Company A production would require an investment of $ 300000 in production equipment. It expects sales to be 299600 gallons in year 1, after which demand is expected to grow at an annual rate of 4,7%. The average selling price is $ 3.64 / gallon produced. The raw materials cost 2.19 $ / gallon produced. Other production-related costs are $ 252200 / year.

The investor's return on capital requirement is 9%, corporate tax is 20%. The working capital commitment does not need to be taken into account. The lifespan of the production equipment is estimated to be 5 years, during which time it is depreciated on a straight-line basis. Evaluate the profitability of the investment over a five-year period (where the investment is made in year 0 and production is ongoing in years 1-5).

a. Calculate the minimum price at which production is profitable for the product. (for the first year)

b. Calculate the minimum quantity for the product at which production is profitable. (during the first year) Give the answer to the nearest gallon.

c. Calculate the contribution margin % for the product. (during the first year)

----- extra if you can do these I'd appreciate! -------

d. Calculate the free cash flow for the first year of production.

e. Calculate the net present value of the investment.