7. Project Cash Flows and NPV The South Seas Navigation Company is considering buying new sextants for its celestial navigation school. The sextants cost $34,000 and are expected to generate annuity operating cash flows of $7,500 per year for 9 years. The EXCEL sextants will be depreciated, straight line, for 10 years; however, they will be o sold in 9 years for $3,400. The corporate tax rate is 34%. The required rate of return for this project is 12% a. Calculate the initial investment and operating and terminal cash flows for this project. c. Would you take this investment