Anold inc: Is considering a proposal to manutacture high-end protein tars used as food supplements by body builders. The project requires use of an exising warehouse, which the fim acquired throe years ago for $4 milion and which it currently rents out for $130,000. Rental rates are not eupected to change going forward. In addition to using the warehouse, the project requies an uptrort investment into machines and other equpment of $1.5 milion. This investment can be fully depreciated straight-line over the next 10 years for tax purpeses. However, Aenold inc expects to berminate the project at the end of eight years and to sell the machines and equpment for $434,000. Finaly, the project require an inital investment into net working captal equal to to percent of. predicted first-year sales. Subbequenty, net working captal is 10 percent of the predicted sales over the following yea., Sales of protein bars are expected to be 54.8 milion in the first year and to stay. constart for eight years. Total manufacturing costs and operating expenses (excluding depreciation) are Bo percent of sales, and profts are taxed at 30 persent. a. What are the free cash fows of the pecject? b. It the cost of capital is 15%, what is the NPV of the propect? a. What are the tree cash flows of the project? Tho FCF for year Q is S milion. (Round to three decimsi places.)