A proposed project is expected to generate revenues of $20,000, $24,000, $26,000 $24,000 and $20,000 during year 1, year 2, year 3, year 4, and year 5 respectively. Net working capital requirement for the project is estimated as below:
Cash 10% of revenue
Account receivables 30% of revenue
Inventory 50% of revenue
Account payables 40% of inventory
As part of capital budgeting analysis, please calculate the cash flows related to working capital (CFWC) for this project (hint: working capital must be available at the beginning of each year).