1.Refer to Question 22 (end of Chapter 12's exercise) Traid Winds Corporation, a firm in the 34 percent marginal tax bracket with a 15 percent required rate of return or discount rate, is considering a new project. This project involves the introduction of a new product. This project is expected to last five years and then, because this is somewhat of a fad project, it will be terminated. Given the following information, determine the net cash flows associated with the project $14,800,000 $200,000 Cost of new plant & equipment Shipping & installation costs Unit sales Year Unit sold 70,000 120,000 120,000 80,000 70,000 $300/unit in years 1-4, $250/unit in year 5 $140/unit $700,000 2 4 Sales price per unit Variable cost per unit; Annual fixed costs Working capital requirements: There will be an initial working capital requirement of $200,000 to get production started. For each year, the total investment in net working capital will be equal to 10 percent of the dollar value of sales for that year. Thus, the investment in working capital will increase during Years 1 through 3, then decrease in Year 4. Finally, all working capital is liquidated at the termination of the project at the end of Year 5. The depreciation method: Use the simplified straight-line method over five years. It is assumed that the plant and equipment will have no salvage value after five years