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The president of Real Time Inc. has asked you to evaluate theproposed acquisition of a new asset and you found the followingdata:MACRSclass: 3-year (33%, 45%, 15%, 7%)EconomicLife: 3 yearsPrice: $300,000Freight andInstallation: $30,000SalvageValue: $60,000Effect on NWC : Increase by $10,000Revenues: $300,000/year (100,000 units at $3/unit)Operating Costs excl. depreciation:50% of sales revenueTaxrate: 40%Cost ofcapital 10%Use the Project Cash Flow Table below to calculate the relevantafter tax cash flows, and then answer the questions concerninginvestment cost, cash flows, tax on capital gain from sale of theasset, and net present value.What is the net investment required at t = 0?What is the non-operating terminal cashflows at the end of Year 3?How much tax is the firm expected to pay when the asset is soldfor $60,000 in year 3?What is the project's NPV?What is the operating cash flow in Year 2?What is the operating cash flow in Year 1?What is the operating cash flow in Year 3?