Anderson Industries is considering a new project and estimates sales of $5,000,000 per year for five years. They estimate variable expenses of $3,750,000 annually and $800,000 in annual fixed expenses (excluding depreciation). Included in the $800,000 annual estimate of fixed expenses is $350,000 in incremental costs of maintaining the new facility, $250,000 in allocations of existing costs for corporate expenses and $200,000 in new incremental human resource and customer service costs related to the project. Anderson has already spent $500,000 over the past 5 years developing this new project At the start of the project and in every year of the project net operating working capital will be 7% of next year's expected sales. At the end of the five-year project the net working capital will no longer be required. The project will require an initial investment in new plant construction and equipment of $2,500,000. They plan to operate this plant for five years and have already spent $150,000 on architect's fees for the plant design. This plant will be built on land that they acquired ten years ago for $100,000 (land is not depreciated) across the street from their current facility. This land has a current market value of $300,000. The IRS requires Anderson to depreciate the plant and equipment to a value of zero on straight-line basis for five years. At the end of five years they expect to be able to sell the land, plant and equipment for $600,000 The tax rate is 20% and Anderson has an Opportunity Cost oif Capital of 9%. 1.(5 points) Provide the incremental project NOPAT for the five years of the project 2. (7 points) Provide the Free Cash Flows generated by the project for years 0-5. 3. (3 Points) Calculate the NPV of the project