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inflation and project cash flows) the price of a guion of regular line is $2.44 and the pled rate of inflation in energy prices is

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inflation and project cash flows) the price of a guion of regular line is $2.44 and the pled rate of inflation in energy prices is such that the cost of us is expected to rise by percerit per year, what is needed pro gallon in 12 years? The expected price per galon of gas in 12 years (Round to two decimal places Related to Checkpolet 12.5) (Calculating project cash flows and NPV) You are considering expanding your product in a comment consists of skateboards to include gas-power art, and you feel you can well 12.000 at these per year for 10 years after which to this project is spected to shut down with solar powered skateboards taking over The gas skateboards would sell for each with able costs $45 for each one produced and find com associated with production would be $170.000. In addition there would be a $1.300,000 initial expenditure sociale wie e purchase of new production equipment. It is autuned initial pediu w be depreciated wing simplified straight line method down to zero over 10 years. The project will also require a one time inal investment of 540.000 in net worting capital cord with ventory, and the working comediant will be record when the project is shut down. Finally, assume that the firm's marginal tax rate is 31 percent. What is the cash outlay associated with this project? b. What are the annual net cash flows associated with this project for years through What is the termina coth fow in year 10 that is what is the tree cash fow year to pay aditional cash fociated with mination of the projet d. What is the projects NPV given a required rate of return of 13 percent? The initial cash outy sected with this projects Round to the newest dollar) The annual retoash flow sted with this project for yours through are found to the newest dolar) c. The terminal cash fow in year 10 at is, the free cash low in year 10 play and cathows vected with termination of the procesi Round to be remor) d. Given a required rate of retum af 1%. the project's NOVI (Round to the nearest dow)

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