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help with this problem (Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 31

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(Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 31 percent marginal tax bracket with a required rate of return or discount rate of 13 percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then, because this is somewhat of a fad product, it will be terminated. Given the following information, , determine the free cash flows associated with the project, the project's net present value, the profitability index, and the internal rate of return. Apply the appropriate decision criteria. Cost of new plant and equipment: $14,400,000 Shipping and installation costs: $210,000 Unit sales: \begin{tabular}{|c|c|} \hline & 85,000 \\ \hline Sales price per unit: & $320/ unit in years 1 through 4,\$270/unit in year 5 \\ \hline Variable cost per unit: & $100/ unit \\ \hline Annual fixed costs: & $650,000 \\ \hline Working-capital requirements: & \begin{tabular}{l} There will be an initial working capital requirement of \\ $170,000 to get production started. For each year, the \\ total investment in net working capital will be equal to 11 \\ percent of the dollar value of sales for that year. Thus, \\ the investment in working capital will increase during \\ years 1 through 3 , then decrease in year 4 . Finally, all \\ working capital is liquidated at the termination of the \\ project at the end of year 5 . \end{tabular} \\ \hline The depreciation method: & \begin{tabular}{l} Use the simplified straight-line method over 5 years. It is \\ assumed that the plant and equipment will have na \\ salvage value after 5 years. \end{tabular} \\ \hline (Click on the icon D in order to 0 & its contents into a spreadsheet.) \\ \hline \end{tabular}

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