(Calculading free cash fows) You are considering new elliptical trainers and you feel you can sell 4,000 of these per year for 5 years (after which time this project is expected to shut down When it is leamed that being fit is unhealthy). The eliptical trainers would sell for $1,500 each and have a variable cost of $750 each. The annual freed costs associated with production would be $1,400,000. In addition, there would be a $6,000,000 inital expend ture associated with the purchaso of new producfion equipment. It is assumed that this initial expendture will be depreciated using the simplified straight-line method down to zero over 5 years. This project will also require a one-time intial investment of $1,200,000 in net working capital associated with inventory, and that working capital investment will be recovered whon the project is shut down. Finally, assume that the firm's marginal tax rate is 34 percent. a. What is the initial outlay associated with this project? b. What are the annual free cash flows associated with this project for years 1 through 4 ? c. What is the terminal cash flow in year 5 (that is, what is the free cash flow in year 5 plus any additional cash flows associated with the termination of the propect)? d. What is the project's NPV given a required rate of metum of 9 percent? a. What is the initial outlay associated with this project? (Round to the nearest dollar.) b. What are the annual free cash flows associated with this project for years 1 through 4 (note that the cash flows for years 1 through 4 are equal)? (Round to the nearest dollar.) c. What is the terminal cash flow in year 5 (that is, what is the free cash flow in year 5 plus any additonal cash flows associated with the termination of the project)? (Round to the nearest dollar) d. What is the project's NPV given a required rate of return of 9 percent? (Round to the nearest dollar.)