a. compute the annual operating cash flows for years 1-5

b.what is the year 0 operating cash flow

c. compute the after tax salvage value

d. compute the npv of the project

0) Admiral Investment Advisors (AIA) plans to invest in an Al computer-based advising system that should allow it to dramatically increase assets under management (AUM) at a very low cost. The company spent $3.5 million on market research and $1.0 million on pre-marketing this controversial product for a firm that prides itself on high-touch service. AIA estimates the cost of the computer hardwar and software to be $20,000,000 with an estimated life of five years bccause the company expects a new generation of Al to supplant its initial entrance into pace by that time. This expenditure will be depreciated as a 5-year asset under ACRS. At the end of ycar 5, AIA expects to sell the system for S250,000. First ar assets under management are expected to increase by $500 million with grow 100%, 75%, 50%, and 25% expected over the following four years. AIA expec am 55 basis points on the AUM or 0.55% during the first year, 50 basis points second year and 45 basis points each year thereafter. $1 million in working al is required as part of the product rollout and only 25% is expected to be ered at the end of 5 years. Expenses are expected to be 20% of revenue dur st year, falling to 15% for years 2 and 3, and then to 10% for the remaining project. AIA's tax rate is 40% and its cost of capital is 12%. (15 points) this