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Data Table Cost of new plant and equipment: Shipping and installation Cents: Unit sales: $14,800,000 $170,000 Year Units Sold 60,000 130,000 130,000 70,000 60,000 Sales

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Data Table Cost of new plant and equipment: Shipping and installation Cents: Unit sales: $14,800,000 $170,000 Year Units Sold 60,000 130,000 130,000 70,000 60,000 Sales price per unit: Variable cost per unit: Annual fixed costs: Working capital requirements: $290/unit in years 1 through 4, $240/unit in year 5 $180/unit $750,000 There will be an initial working capital requirement of $180,000 to get production started. For each year, the total investment in net working capital will be equal to 14 Print Done 12 22 S al to) (Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 33 percent marginal tax bracket with a required rate of return or discount rate of 11 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, it will be terminated. Given the following information, 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. Determine the free cash flows associated with the project. The FCF in year is $ (Round to the nearest dollar.)

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