Calculafing free cash flows) You are oonsideting new ollipfica? trainers and you feel you can soil 4,000 of these per yal for 5 years (after which time this proyect is expected to shut dosn when it is laamed that being fit is unhealthy). The olliptical trainers would sell for $1/200 esch and have a variable cost of 3600 each The annual fixed costs associated with production would be $1,500,000. In addicon, there would bo ar $4,000,000 initiat expenditure associaled with the purchase of new. production equipenent. 1s is assumed that this iritiat expenditure witt be depreciatod using the simplifed straight-line mothod down to zero over 5 years. This project will also requate a one-time initial imvestment of $1,400,000 in net working capial associated with invontory, and that working capital irwostment wili be rocovered when the project is shut down. Finally, assume that the firti's marginal tax rabe is 36 porcont. a. What is the initial outlay associaled with this project? b. What are the anrual tree cash flows associated with this project for years 1 through 4 ? c. What is the terminal cash flow in yoar 5 (that is, what is the free cash flow in year 5 plunt any additional cash flows associated with the termination of the projoct)? d. What is the projects NPV. given a required rate of ceturn of 11 percent? a. What is the irvial outlay ansociated with this project? (Found ta the noiarest dohat.) b. What are the amuax fres canh fows assocaated with this proyect for years 1 through 4 (note that the cash flows for yods 1 throughi 4 are equal)? (Roird to the neacnst doiac.) (Rosnd to the newred dolar) d. What is the projects NPV givon a requifed rote of rotum of 11 peroent? (Flound to thit nourest bolla )