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A company is thinking of starting a new line of coffee business: coffee trucks will deliver coffee from popular brands to customers' doors and customize

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A company is thinking of starting a new line of coffee business: coffee trucks will deliver coffee from popular brands to customers' doors and customize coffee flavor right there. The company estimates that it will cost $650,000 to immediately invest into new delivery vehicles and coffee brewing machines. The estimated operating cash flow will equal $130,000 per year. At the end of Year 10 this pilot coffee delivery project will be over, at which time all used vehicles and equipment will be sold at the after-tax salvage value of $200,000. The company also plans to immediately set aside $12,000 in cash, and this will be increased by $4,000 each year. If no loan is used, the required rate of return on this project is 13%. If, however, the company does take a loan, it will equal 45% of the initial cost of the equipment (i.e., delivery vehicles and coffee brewing machines), it will be an interest-only loan, with the annual interest rate of 5.5%. HINT: You will not need to use all numbers that are given in this problem! Calculate unlevered cash flows for this project. Signs are important! . Year 0 cash flow equals $ Intermediate year's cash flow (i.e., for each year) equals $ Final year's cash flow equals $ 4 4

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