Conduent Inc., is a media company that it is considering the expansion of its projects. The new project involves purchasing computer equipment budnled lifetime license for softwares that allows the company to expand the prodcution of content and sales of its media contents to its customers. This project is expected to last 5 years and then project will be terminated. The company uses the simplified straight-line method over 5 years. It is assumed that the equipment and license will recover salvage value, if any, at the termination of the project. This project has the following working capital requirement: There will be an initial working capital requirement of $87,950 just to get the production started. For each year, the total investment in net working capital will equal 14.5% of the dollar value of sales for that year. All working capital is liquidated at the termination of the project at the termination year of the project. Given the following information, determine the free cash flows associated with the project (tabulate your answer on a year by year basis), the project's net present value and the profitability index. Apply the appropriate decision criteria. Year 1 (Per unit) Year 2 (per unit) $1,450 Sales price per unit: Variable cost per unit: Year 3 (Per unit) Year 4 (per unit) Year 5 (Per unit) $1,780 $2,200 $2,450 $2,600 $340 $ $460 $555 $570 $310 $498,930 Annual fixed costs: Cost of new plant and/or equipment: Shipping and installation $395,450 costs: $120,000 Salvage value at termination: $125,750 Unit Sales: Year Unit Sold 3 1 170 2 195 4 450 5 478 419 33% Company's marginal corporate tax rate: Project's required rate of return: 9.50%