A new project has 8 years' life. This project requires initial investment of $195 million to purchase land, construct building, and purchase equipment, and $15 million for shipping & installation fee. The fixed assets (Total of 195+15= $210 M) fall in the 7-year MACRS class. The salvage value of fixed assets is $38 million. The number of units of the new product expected to be sold in the first year is 880,000 and expected to grow at annual growth rate of 9%. The sales price is $266 per unit and the variable cost is $179 per unit in the first year, but they should be adjusted accordingly based on the estimated annualized inflation rate of 2.8%. The required net operating working capital (NOWC) for each year is 15% of sales for that year. The company is in the 21% tax bracket. The project is assumed to have the same risk as the corporation of Exxon Mobil, so you should use the WACC of 6.97% as the discount rate. Compute the depreciation basis and annual depreciation of the new project. - Estimate annual cash flows of the project for all the 8 years. - Draw a time line of the cash flows