Homework: HW8 Chapter 12 Save Score: 0 of 20 pts 3 of 3 (2 complete) HW Score: 8%, 4 of 50 pts P12-22 (algorithmic) Question Help (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 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 return. Apply the appropriate decision criteria, a. Determine the free cash flows associated with the project The FCF in year 0 is $ (Round to the nearest dollar.) Data Table Cost of new plant and equipment: Shipping and installation costs. Unit sales $15,000,000 $170,000 Year 1 2 3 4 Units Sold 60,000 130,000 130,000 70,000 60.000 Sales price per unit Variable cost per unit Annual fixed costs Working-capital requirements 5330/unit in years 1 through 4, 5280/unit in year 5 $120/unit $800,000 There will be an initial working capital requirement of $210,000 to get production started. For each year, the total investment in net working capital will be equal to 13 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 Enter your answer in the answer box and then click Check Answer Ativite Windows Goto Letting Check Answer 9 pants remaining O ENG 10:39 AM 1/29/2021 Homework: HW8 Chapter 12 Score: 0 of 20 pts 3 of 3 (2 complete) HW Score: 89 P12-22 (algorithmic) Question (Related to Checkpoint 12.1) (Comprehensive problem-calculating proiect cash flows. NPW PL and IRRI Traid Minds. Comacation a first in the 31.nercent.marginal day hracket with a required rate of return or of 11 percent is considering a new project. This project involves the introdud will be terminated. Give following information determine the free cash flows associated with the Data Table ecision criteria - a. Determine the free cash flows associated with the project The FCF in year is 5 (Round to the nearest dollar.) 1 2 3 4 5 60,000 130,000 130,000 70,000 60,000 Sales price per unit Variable cost per unit: Annual fixed costs Working-capital requirements: $330/unit in years 1 through 4, 5280/unit in year 5 $120/unit 5800,000 There will be an initial working capital requirement of $210,000 to get production started. For each year, the total investment in net working capital will be equal to 13 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 Answer Live Windows Crosting Check Answer 9 parts remaining Print Done