A firm makes purchases from its supplier that offers credit terms of 3/20, net 50. Explain the meaning of this credit term. We estimate unit sales from a new project as follows: The product will be priced to sell at $50 each. The project will require $400,000 in net working capital to start. The NWC will be recovered at the end of the project. The variable cost per unit is $25, and total fixed costs are $10,000 per year. The equipment is assumed to depreciate according to a 2-year. Straight-line depreciation schedule. At the end of year 2, the equipment will be sold at $10,000. The corporate tax rate is 40%. (a) Calculate the annual cash flows for this project