(Caiculating free cash flows) You are considering new eliptical trainers and you feol you can sell 4,000 of these per year for 5 years (attor which fime this project is enpected to shuf down whien it is. leamed that being 6t is unhealthy). The eliptical trainers would sell for $2,000 each and have a varable cost of $1,000 nach. The annual frixed costs assoclated with froduction would be $1,000,000. In addition, there would be a 57,000,000 initial expenditure associated with the purchase of new production equipment. It is assumed that this initial espenditure will be deprecialed ining the simplified straight-ine method down to zero over 5 years. This project wit also reguire a one-time intial investment of 51,100,000 in net working capital associated with inventory and finat workhg capital investment wil be recowered when the project is shut down. Finally, assume that the firmis marginal tax rate is 35 percent. a. What is the intial outiay bssociated we this project? b. What are the annual free cash fows associated with this project for years 1 through 4 ? c. What is the terminal cash fow in year 5 (that is, what is the free cath flow in year 5 plus any addifional cash floms associaled with the lermination of the project)? d. What is the projects NPV given a required rale of retum of 9 perceet? a. What is the intial outlay associated with this peopect? (Round to that nearsut dollar) b. What are the annual bee cash cows assodated wen this peoject for years 1 through 4 (note that the cash flawe for years 1 through 4 are equal?? 5. (Round to eve nearest dolari). c. What is the terminat cash flow in year 5 (that is, what is the free cash tow in year 5 plos any adgtional cash foos associated with se teemination of the propecte? (Round to the neareat dollar.) d. What is the project's NPV given a feguined nate of roturn of 9 percent? (Found to the nearest dotlar.)