As a financial analyst, you must evaluate a proposed project to produce printer cartridges. The equipment would cost $55,000, plus $10,000 for Installation. Annual sales would be 4,000 units at a price of $50 per cartridge, and the project's life would be 3 vears. Current astets would incruzer by $5,000 and payabies by $3,000. At the end of 3 years, the equipment could be sold for $10,000. Depreciation would be based on the MACRS 35 yeas class; so the applicable rates would be 33%,45%,15%, and 7%. Variable costs would be 70% of sales revenues, fixed costs excluding depreciation would be $30,000 per year, the marginal tax rate is 40%, and the corporate WACC is 11%. 1. What is the required investment, that is, the Year 0 project cash flow? 2. What are the project's annual net cash flows? 3. What is the terminal year project cash flow? You did a scenario analysis to better understand the project's NPV: The firms project CV generally range from 1.0 to 15. A aX risk premium is added to the WACC if the intias CV coceeds 2.5 and the WACC 6 reduced by 0.5 if the CV is 0.75 or less. Then a rvised NPV is calculated. What WACC should be uned for this project