A firm is planning a new project: (1) This project costs $1,400,000 to purchase fixed assets, and $50,000 for shipping & installation fee. (2) The life of this project is 5 years. The salvage value of fixed assets is 20% of the gross fixed assets (including shipping & installation fee). (3) The working capital needed is $35,000 in 2021, and it is expected to increase 4% each year thereafter. (4) This project can produce 180,000 units in 2021, and the production is expected to grow 5% each year. The current unit price is $7, and the cost of each unit is $4.5. (5) The inflation rate is 2.0% each year. The firm will adjust both the unit price and the variable cost of each unit based on the inflation rate. (6) The firm uses the 5-year straight-line depreciation policy for its fixed assets, and it is in the 28% tax bracket. (7) The cost of capital for the firm is 10%.

A) Calculate the initial outlay, annual after-tax cash flows, and terminal cash flow for this project.

B) Calculate the payback period, discounted payback period, NPV, PI, IRR, and MIRR.