DO NOT USE EXCEL OR ANY SPREADSHEET TO ANSWER. Solve the problem step by step on Word DOC or Paper so it's easy to understand.

EBike, Inc. is considering opening a new product line for its Arlington factory to meet the demand for solar-charged e-bikes. The proposed project has the following features; - The project has an initial cost of $30,000,000 for manufacturing equipment related investments. - The firm just spent $450,000 for a marketing study to determine consumer demand (@t=0). - The project will utilize unused factory floor space that could otherwise be leased for 5 years for a one time upfront payment of $494,382 (@t=0) - If the project is undertaken, at t=0 the company will need to increase its inventories by $4,500,000, accounts receivable by $1,600,000, and its accounts payable by $2,500,000. This net operating working capital will be recovered at the end of the project's life. - If the project is undertaken, the company will realize an additional $14,000,000 in sales over each of the next five years. (i.e. project related sales in each year are $14,000,000) - The company's operating cost (not including depreciation) will equal 45% of sales. - The company's tax rate is 35 percent. - Use a 3-year MACRS depreciation schedule (provided below). - At t=5, the project is expected to cease being economically viable and the equipment will be sold for $5,500,000. - The project's WACC=10 percent - Assume the firm is profitable and able to use any tax credits (i.e. negative taxes)