Frito Lay is considering a new line of potato chips. This will be a two year project. a. Frito Lay paid $1,000,000 last year to a winning person who thought of the new ne of potato chips b. New equipment for the factory line will cost $12.000.000 and depreciation is by the 5-year MACRS method. Purchase of the equipment will require an increase in net working capital of $600,000 at time of which will be recaptured at the end of the project c. The new potato chips will generate an additional $6,000,000 in revenues in the first year and $4,000,000 in revenues in the second year. d. In addition to the additional revenues outlined in c. The new potato chips will decrease existing chip line revenues by $2.000.000 the first year. There will not be any effect in the second year. e. The new project is estimated to have expenses of $150.000 each year. . At the conclusion of the project, the equipment can be sold for $7,000,000 & The firm's marginal tax rate is 20 percent, and the project's cost of capital is 7 percent The following is the MACRS Depreciation Table: Year 3-year 2.year 33.33% Syear 20.00% 32.00% 14.29% 44.44% 24.49% 14.82% 19.20% 17.49% 7.41% 11.52% 12.49% 11.52% 8.93% 5.76% 8.93% 8.93% 4.45% Question 1 (1 point) What is the depreciation expense in Year 1 in Ssi? Question 2 (1 point) What is the depreciation expense in Year 2 n $si? Question 3 (1 point) What is the after tax salvage value of the equipment at the end of year 2? Question 4 (1 point) What is the terminal cash flow (the last cash flow of the project not including the OCF)? Question 5 (1 point) What is the initial investment in this project (enter as a negative number)? Question 6 (1 point) What is the after tax OCF in year 1? Question 7 (1 point) What is the after tax OCF in year 2? Question 3 (1 point) What is the project's NPV? Question 9 (1 point) What is the project's IRR? Question 10 (1 point) Should you ACCEPT or REJECT the project? ) ACCEPT OB) REJECT