The Freeman Manufacturing Company is considering a newinvestment. Financial projections for the investment are tabulatedbelow. The corporate tax rate is 34 percent. Assume all salesrevenue is received in cash, all operating costs and income taxesare paid in cash, and all cash flows occur at the end of the year.All net working capital is recovered at the end of theproject. a. Compute the incremental net income of theinvestment for each year. (Do not round intermediatecalculations.) b. Compute the incremental cash flows of the investment for each year. (Do not round intermediatecalculations. A negative answershould be indicated by a minus sign.) c. Suppose the appropriate discount rate is 13percent. What is the NPV of the project? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

NPV $ . . .