Homework: Chapter 12 Homework Save 5 of 5 (5 complete) HW Score: 71.25%, 11.4 of 16 pts Score: 0.4 of 4 pts W P12-22 (similar to) Question Help (Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Trald Winds Corporation, a fim in the 36 percent marginal tax bracket with a required rate of return or discount rate of 11 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 retum. Apply the appropriate decision criteria. a. Determine the free cash flows associated with the project. The FCF in year is $ - 15350000. (Round to the nearest dollar.) The FCF in year 1 is $ 7,326,960. (Round to the nearest dollar.) The FCF in year 2 is $ 14,980,960. (Round to the nearest dollar.) The FCF in year 3 is $ 1310896. (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. parts o remaining Clear All Check Answer Homework: Chapter 12 Homework Save 5 of 5 (0 completa) HW Score: 0%, 0 of 16 pts Score: 0 of 4 pts P12-22 (similar to) E Question Help O A Data Table X (Related to Checkpoint 12.1) (Comprehensive problem-calc is considering a new project. This project involves the introduction determine the free cash flows associated with the project the proje racket with a required rate of return or discount rate of 11 percent, t will be terminated. Given the following information, a. Determine the free cash flows associated with the project. $15,000,000 $180.000 The FCF in year is $ Cost of new plant and equipment: Shipping and installation costs: Unit sales: (Round to the nearest dollar.) Year Units Sold 65,000 125,000 125,000 75,000 65,000 Sales price per unit: Variable cost per unit: Annual fixed costs: Working capital requirements: $320/unit in years 1 through 4, 5270/unit in year 5 $120/unit $600,000 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 9 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. Use the simplified straight-line method over 5 years. It is assumed that the plant and equipment will have no salvage value after 5 years. The depreciation method: Enter your answer in the answer box and then click Check Ang Print Done O parts y remaining Clear A Check Answers Homework: Chapter 12 Homework Save 5 of 5 (5 complete) HW Score: 71.25%, 11.4 of 16 pts Score: 0.4 of 4 pts W P12-22 (similar to) Question Help (Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Trald Winds Corporation, a fim in the 36 percent marginal tax bracket with a required rate of return or discount rate of 11 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 retum. Apply the appropriate decision criteria. a. Determine the free cash flows associated with the project. The FCF in year is $ - 15350000. (Round to the nearest dollar.) The FCF in year 1 is $ 7,326,960. (Round to the nearest dollar.) The FCF in year 2 is $ 14,980,960. (Round to the nearest dollar.) The FCF in year 3 is $ 1310896. (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. parts o remaining Clear All Check Answer Homework: Chapter 12 Homework Save 5 of 5 (0 completa) HW Score: 0%, 0 of 16 pts Score: 0 of 4 pts P12-22 (similar to) E Question Help O A Data Table X (Related to Checkpoint 12.1) (Comprehensive problem-calc is considering a new project. This project involves the introduction determine the free cash flows associated with the project the proje racket with a required rate of return or discount rate of 11 percent, t will be terminated. Given the following information, a. Determine the free cash flows associated with the project. $15,000,000 $180.000 The FCF in year is $ Cost of new plant and equipment: Shipping and installation costs: Unit sales: (Round to the nearest dollar.) Year Units Sold 65,000 125,000 125,000 75,000 65,000 Sales price per unit: Variable cost per unit: Annual fixed costs: Working capital requirements: $320/unit in years 1 through 4, 5270/unit in year 5 $120/unit $600,000 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 9 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. Use the simplified straight-line method over 5 years. It is assumed that the plant and equipment will have no salvage value after 5 years. The depreciation method: Enter your answer in the answer box and then click Check Ang Print Done O parts y remaining Clear A Check Answers