It's been two months since you took a position as an assistant nancial analyst at NZ Products Ltd. Your boss has been pleased with your work and has asked you to evaluate the introduction of a new product under consideration. The new assignment involves the calculation of the cash flows associated with the new investment. providing a recommendation and responding to a number of questions about the investment process. Since the new product has a brief life cycle that rises quickly in popularity but then declines just as quickly, the project is expected to last only 5 years before it is terminated. New equipment required for the new product will oost $12,500,000 and incur about $175000 in shipping and installation costs. Estimated sales in number of units are 65,200 on average in years 1 to 5. The sales price is expected to be $290 per unit in years 1 to 4 and $210 per unit in year 5 due to lower demand. The variable cost is estimated to be $195 per unit and annual xed costs $190,000. In addition, there will be an initial working capital requirement of $150,000 to get the production started. You should use the straight-line depreciation method over 5 years with zero salvage value after 5 years. NZ Products Ltd has a marginal tax rate of 23% and a cost of capital of 16%. You can download formulas here if you want to. Required: You can type your answers and working straight into the box below, or you can type your answers and working into a document. and cut and paste into the box below, or you may handwrite the answers and working. take a photo and upload into the File uploading box at the bottom of this screen [scroll down). a. What is the project's initial ouay? (2 marks) b. Calculate the free cash ows in year 1 through year 5. Show your workings. (8 marks) c. What is the net present value for this project? Show your workings. (5 marks) d. What is the payback period? Show your writings. (3 marks) e. Formulate a recommendation whether the project should be acoepted. including why or why not. (2 marks)