Help with terminal cash flow

(Related to Checkpoint 12.1) (Calculating project cash flows and NPY) You are considering expanding your product line that cunently consists of skasboards te include gas powered skateboards, and you feel you can sell 7,000 of these per year for 10 years (afier which fime this project is expected to shut dowil with solar-powered skatrboarts taking over). The gas skateboards would sell for $80 each with variable costs of $30 for each one produced, and annual fxed costs associated with producion would be $200,000. In adtiaton, there wisuld be a 51,400,000 initial expenditure associated with the purchase of new production equipment. If is assumed that this inital expenditure will be depreciated using the simphied straighit line methi down to zero over 10 years. The project will also require a one-time inisal investment of 580,000 in net working capital associated with inventory, and this wodking cagital invistinent will be recovered when the project is shut down. Finally, assume that the firm's magrinal tax rate is 33 percent. a. What is the initial cash outhay associated with this project? b. What are the annual net cash flows associaled 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 yeat 10 plus any additional cash flows associased with tarminaton of the brojecti ? d. What is the profects NPV given a fequired rate of return of 11 percent? a. The inital cash outlay associated with thas project is $1480000. (Round to the nearest dollar) b. The annual net cash fows associated with this project for yoars 1 through 9 are $146700. (Round to the nearest dollar) c. The terminal cash flow in year 10 (that is, the free cash flow in year 10 plus any addifonal cash hows associabd with terminaton of the propect is I (Round io thin sararest dollab)