(Comprehensive problem) Traid Winds Corporation, a firm in the 34 percent marginal tax bracket with a required rate of return or cost of capital of 15 percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then, because this is somewhat of a fad product, he terminated. Given the information in the popup window,

Determine the free cash flows associated with the project, the projects net present value, the profitability index, and the internal rate of return. Apply the appropriate decision criteria. Thank you for helping me, I will give it a thumbs up!

1. What is the initial outlay associated with this project? $___ (Round to the nearest dollar.)
2. What is the annual free cash flow associated with this project in year 1? $___ (Round to the nearest dollar.)
3. What is the annual free cash flow associated with this project in year 2? $___ (Round to the nearest dollar.)
4. What is the annual free cash flow associated with this project in year 3? $___ (Round to the nearest dollar.)
5. What is the annual free cash flow associated with this project in year 4? $___ (Round to the nearest dollar.)
6. What is the terminal cash flow in year 5 (that is the free cash flow in year 5 plus any additional cash flows associated with the termination of the project)?

18. (Comprehensive problem) Traid Winds Corporation, a firm in the 34 percent marginal tax bracket with a required rate of return or cost of capital of 15 percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then, because this is somewhat of a fad product, he terminated. Given the information in the popup window, \begin{tabular}{ll} \hline Cost of new plant and equipment & $14,800,000 \\ Shipping and installation costs & $200,000 \\ Unit sales & \end{tabular} Sales price per unit Variable cost per unit Annual fixed costs Working-capital requirements Depreciation method $300 /unit in years 1 through 4, \$250/unit in year 5 $140 /unit $700,000 per year in years 15 There will be an initial working-capital requirement of $200,000 just to get production started. For each year, the total investment in net working capital will be equal to 10 percent of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 and 2, then decrease in year 4. Finally, all working capital is liquidated at the termination of the project at the end of year 5 . Use the simplified straight-line method over 5 years. Assume that the plant and equipment will have no salvage value after 5 years. Determine the free cash flows associated with the project, the project's net present value, the profitability index, and the internal rate of return. Apply the appropriate decision criteria. a. What is the initial outlay associated with this project? $ _ (Round to the nearest dollar.)