(Calculoting free cash flows) You are considering new eliptcal trainers and you feel you can sell 5,000 of these per year for 5 years (after which time this propect is expected to shut down when it is learned that being fit is unhealthy). The elliptical trainers would sel for $1,600 each and have a variable cost of 5600 each. The annual fixed costs associated with production would be $1,400,000, in addition, there would be a $3,000,000 initial expenditure associated with the purchase of new producton equipment. it is assumed that this intial expenditure will be depreciated using the nimplifed straight-line method down to zero over 5 years. This projoct will also require a one-6ine intarirvestment of $1,100,000 in net working capial associated with inventory, and that working capital investment will be recovered when the project is shut down. Finally, assume that the firmis margnal tax rate is 34 percent. a. What is the inital outlay ssscciated 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 fow in year 5 plus any additional cash flows associated with the termination of the project? a. What is the project's NPV given a reeuired rate of return of 12 percent? a. What is the intial outiay associated with this project? (Round to the nearest dollar,) b. What are the annual tree cash flows associaled with this project for years 1 through 4 (note that the cash fows for years 1 through 4 are equali? (Round to the nearest dolar) c. What is the leminal cash flow in year 5 (that is, what is the free cash fow in year 5 plus any addichal eash flows associated weth the termination of the properd) (Round to the nearest dolist) d. What is the projects NPV giveri a required rate of rebum of 12 peroent