(Determining relevant cash? flows)??Landcruisers Plus? (LP) has operated an online retail store selling? off-road truck parts. As the name? implies, the firm specializes in parts for the venerable Toyota FJ40 that is known throughout the world for its durability and offroad prowess. The fact that Toyota stopped building and exporting the FJ40 to the U.S. market in 1982 meant that FJ40 owners depended more and more on? re-manufactured parts to keep their beloved? off-road vehicles running. More and more FJ40 owners are replacing the original inline? six-cylinder engines with a modern? American-built engine. The engine replacement requires mating the new engine with the Toyota drive train.

?LP's owners had been offering engine adaptor kits for some time but have recently decided to begin building their own units. To make the adaptor kits the firm would need to invest in a variety of machine tools costing a total of

?$600,000.LP's management estimates that they will be able to borrow $340,000

from the? firm's bank and pay 8

percent interest. The remaining funds would have to be supplied by? LP's owners.

The firm estimates that they will be able to sell? 1,000 units a year for

?$1,400 each. The units would cost

?$1,000 each in cash expenses to produce? (this does not include depreciation expense of

?$60,000 per year or interest expense of

?$27,200?). After all? expenses, the firm expects earnings before interest and taxes of $340,000.

The firm pays taxes equal to 38 percent, which results in net income of $183,600 per year over the

10?-year expected life of the equipment.

.??The financing cost associated with the

?$340,000 loanshould not or should be incorporated into the analysis of cash flow

B) The annual free cash flow LP should expect to receive from the investment in years 1 through 10 is?

b.??The the anticipated NPV of the investment is (Round to the nearest? dollar.)