2. Bartlet Industries is considering a new product line. In order to manufacture the new product line, the firm will need to purchase new machinery at a cost of $250,000. The machinery will have an installation cost of $25,000. An addition to working capital of $25,000 will be necessary Prior to purchasing the new machinery, Bartlet paid an engineering firm $10,000 to determine if the machinery was appropriate for the project being considered. The machinery will be depreciated using the MACRS for a five-year asset. The depreciation table is below: 1st Year-20% 2nd Year-32% 3rd Year-19.2% 4th Year, 11.52% 5th Year-11.52% 6th Year-5.76% Revenues are expected to be $250,000 in year one, and grow by 5% each year of the project's life. Fixed expenses are expected to be $45,000 per year and variable expenses will start at $35,000 in year one and grow with sales at 5% per year The project is expected to last for four years. After the fourth year, the machinery will be sold for $45,000. Working capital will be liquidated for $20,000. The firm has a 35% tax rate and WACC of 9%. a. Calculate the initial investment required for this project. (4 Points) b. Calculate the annual cash flows for the life of the project. (5 Points) c. Calculate the terminal value of the project (after year 4). (5 Points) d. Calculate the NPV of the project. (3 Points) based on the above information, should the project be accepted? Explain. (2 Points) e