A firm in the 20% marginal tax rate with a 15% of WACC, is considering a new project. The project involves the introduction of a new product. The project is expected to last 5 years and then be terminated. Information on the project is as follows.

Cost of new plant and equipment: $20,900,000 Shipping and installation costs: $300,000 Unit sales Year Units sold 1 100,000 2 130,000 3 160,000 4 100,000 5 60,000 Sales price per unit: $500/unit in years 1 through 4, $380/unit in year 5 Variable cost per unit: $260/unit Annual fixed costs: $300,000 Working capital requirements: There will be initial working capital requirement of $500,000 just to get production started. For each year, thetotal investment in net working capital will be equal to 10% of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 through 3, then decrease in year 4. Finally, all working capital is liquidated at the termination of the project at the end of year 5. The depreciation method: Use the simplified straight-line method over 5 years. Assume that the plant and equipment will have $1,000,000 salvage value after 5 years. (1) Determine the free cash flows associated with the project and the projects net present value and internal rate of return. (2) Create the Data Table with the changing WACC in the Excel template. (3) Calculate the break-even amount of total capital expenditure.