26. If this production line is expected to generate $350,000 in annual sales at a cost of $95,000 annually, what is the OCF and the total cash flow for each year? COST OCF TOTAL CF YEAR O YEAR 1 YEAR 2. YEAR 3 YEAR 4 + 27. If R= 15%, what is the Net Present Value of the scarf project? 28. What is the IRR of the scarf project? 29. Should LBD undertake the project? WHY or WHY NOT? 3. Purple Haze Psychedelics Inc. has a new project that will require fixed assets of $891,000, which will be depreciated using 5-year MACRS. Use the table above or from your text. If their tax rate is 21%, what is the depreciation tax shield for Year 3? LBD is growing fast and for the next two years does not expect to pay a dividend. In year three, dividends are expected to be $.16. In years 4 and 5, dividends are expected to double each year. Thereafter, starting in year 6, dividends are expected to grow at an annual rate of 5%, indefinitely (Therefore, the dividend in year 6 will be 5% larger than the dividend in year 5.) If investors demand o 14% rate of return on LBD stock, what would you expect to pay per share of LBD today