F. Assignment The production facilities cost $25 million as capital expenditure. The annual production quantity for the next 5 years is 200,000 units. Variable production cost is $65 per unit. Per unit sales price is $100. The fixed cost is $5 million per year. The company uses straight line depreciation. Corporate tax rate is zero; and the real cost of capital (r) is 9%. (a) Calculate the total revenues. (b) Calculate the total variable costs. (c) Calculate the annual depreciation charge. (d) Calculate the yearly net cash flow. (e) Calculate the NPV. (f) Is the project acceptable? Why?