Arnold Inc. is considering a proposal to manufacture high$-$end protein bars used as food supplements by body builders. The project requires use of an existing warehouse, which the firm acquired three years ago for $\backslash (\backslash$$ $3\backslash )$ million and which it currently rents out for $\backslash (\backslash$$ $109,000\backslash ).$ Rental rates are not expected to change going forward. In addition to using the warehouse, the project requires an upfront investment into machines and other equipment of $\backslash (\backslash$$ $1\mathrm{.}40\backslash )$ million. This investment can be fully depreciated straight$-$line over the next $10$ years for tax purposes. However, Arnold Inc. expects to terminate the project at the end of $8$ years and to sell the machines and equipment for $\backslash (\backslash$$ $512,000\backslash ).$ Finally, the project requires an initial investment into net working capital equal to $\backslash (10\backslash \%\backslash )$ of predicted first$-$year sales. Subsequently, net working capital is $\backslash (10\backslash \%\backslash )$ of the predicted sales over the following year. Sales of protein bars are expected to be $\backslash (\backslash$$ $4\mathrm{.}80\backslash )$ million in the first year and to stay constant for $8$ years. Total manufacturing costs and operating expenses $($excluding depreciation$)$ are $\backslash (80\backslash \%\backslash )$ of sales, and profits are taxed at $\backslash (25\backslash \%\backslash ).$

a$.$ What are the free cash flows of the project?

b$.$ If the cost of capital is $\backslash (12\backslash \%\backslash ),$ what is the NPV of the project?

a$.$ What are the free cash flows of the project?

The FCF for year $0$ is $\backslash (\backslash$$ $\backslash )$ million. $($Round to three decimal places.$)$

Please help me answer a and b