Calculate the free cash flows below for years 0 through 2: (Round to the nearest dollar.)

After spending SIO 200 on client-development, pu have just been offered a big production contract by a new client. The contract will add $209,000 to your revenues for each of the next 5 years and it will cost you S104,000 per year to make the additional product. You will have to use some existing equipment and buy new equipment as well. The existing equipment is fully depreciated, but could be sold for $54,000 now If you use it in the project, it will be worthless at the end of the project You Will buy new equipment valued at $28,000 and use the 5-year MACRS schedule to depreciate it It will be worthless at the end of the project Your current production manager earns $83,000 per year. Since she is busy with ongoing projects, you are planning to hire an assistant at $45 000 per year to help with the expansiom You will have to immediately increase your inventory from S20,000 to It will return to S20,000 at the end of the project Your company's tax rate is 21% and your discount rate is 14.601m What is the NPV of the contract? (Note: Assume that the equipment is put into use In year 1 Calculate the free cash flows below for years 0 through 2: (Round to the nearest dollar.) Year 0 Year 1 Year 2 Sales - Cost of Goods Sold Gross Profit - Annual Cost - Depreciation EBIT - Tax Incremental Earnings + Depreciation - Changes in NWC - Opportunity Cost - Capital Expenditures Incremental Free Cash Flows