5 year project. cap/pump molds: $1,590,000. Change part: $260,000. Pump assembly $570,000. Useful life is 6 years for all of these products. Partial case returns net of salvage value: $1,800,000. label conversion costs: $700,000. Freight charge/ launch year expenses: $400,000. other miscellaneous: $300,000. Cost reduction: $119,000. market research and development one-time cost: $700,000. historic/baseline sales: $139,500,000. 4% category growth for each year for the next 5 years. incremental growth: 2% in year 1, 1% in year 2, 0.5% in year 3, 0% in years 4 and 5. gross margin 69% of net sales. discount rate: 7%. tax rate: 27%.

What is the initial investment of the project?

What are project cash flows for each year of the project?