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HELP ASAP (Related to Checkpoint 12.1) (Calculating project cash flows and NPY) You are considering expanding your product ine that currectly consists of skateboards to

HELP ASAP
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(Related to Checkpoint 12.1) (Calculating project cash flows and NPY) You are considering expanding your product ine that currectly consists of skateboards to indude gas-powered skateboards, and you feel you can sell 8.000 of these per year for 10 years (ather which teme this project is expected to sthut down wth solarpowered akateboards taking over). The gas skateboards would sell for $120 each with vanable costs of $35 for each one produced, and annual ford costs associstod with production would be $130,000. In add ton, there would be a $1,100,000 intial expenditure associated with the purchase of new peoduction equipment. It is assumed that this intal expenditure will be depreciated using the simplified straighe ine mothod down to zero over 10 years. The project wit also require a one-time initial investment of $40,000 in net working capital associated with inventory, and this working capital investment will be recovered when the project is shut down. Finally, assume that the firmi's marginal tax rate is 36 percent. a. What is the inisil cash outlay associaed with this project? b. What are the annual net cash flows associated with this project for years 1 through 9 ? c. What is the terminal cash flow in year 10 (that is, what is the free cash flow in yoar 10 plus any adstional canh fows associated wen termination of the projectl? d. What is the projects NPV given a required tase of retum of 13 peccent? a. The initial cash ovtlay associated with this project is if (Round to the nearest dofac)

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