As part of its planning for the coming Christmas season, Criswell Motorsports is considering whether to expand its product line that currently consists of skateboards to include gas$-$powered skateboards. The company feels it can sell $3,000$ of these per year for $4$ years $($after which time this project is expected to shut down, with solar$-$powered skateboards taking over$).$ Each gas$-$powered skateboard would have variable costs of Rs $100$ and sell for Rs$.500$; annual fixed costs associated with production would be Rs $600,000.$ In addition, there would be a Rs$.2000,000$ initial expenditures associated with the purchase of new production equipment. It is assumed that the straight$-$line method would be used $($for tax purpose$)$ to depreciate this initial expenditure down to zero over $4$ years. Working capital investment at time zero is Rs$\mathrm{.}100,000$ and estimated selling price of the machinery is Rs$\mathrm{.}250,000$ Finally, the firm$$s marginal tax rate is $30$ percent.

Question $10$

What is the initial cash outlay $($time $0)$ associated with this project?

FCFF at time $0$

Question $11$

What are the annual net cash flows associated with this project for Years $1$ through $3?$

FCFF at time $1$ to $3$

Question $12$

What is the terminal cash flow in Year $4?$

FCFF at time $4$