B12-14 (book/static) Question Help (Rotated to Checkpoint 13.1) (Calculating project cash flows and NPV) You are considering expanding your product in the current consists of boats to include gw-powered boards, and you feel you can sell 10.000 of these per year for 10 years after which time this project is expected to shut down with our powered skateboards taking over The ground would for $100 each with variable costs of $40 for each one produced and annual red costs associated with production would be $160.000. In addition, there would be a $1.000.000 pessociated with the purchase of new production equipment. It is assumed that this initial expenditure will be depreciated using the simple straighine method down to or over 10 years. The project will resonement investment of $50,000 in networking capital associated with inventory, and this working capital investment will be recovered when the project is shut down. Finally assume that the fom's marginal tax rate is 14 percent a What is the initial cash outlay associated with this project? b. What are the annual net cash flows associated with this project for years through ? What is the terminal cash flow in your 10 (that is what is the free cash flow in year 10 plus any additional cash flows stocated with turmination of the project? d. What is the project's NPV given a required rate of rebum of 10 percent? The initial cash outtuy associated with this project is S. (Round to the nearest dottor)