Jameson Electronics Co. is considering new investment project of opening new distribution center. This project requires initial investment $400,000, and annual depreciation is $80,000. Annual CAPEX (capital expenditure) is $20,000 more than depreciation. The project will start with net working capital of $20,000, and its annual increases are given in the table. Other cash flow related information is given in the table. The firm and this project are both 100% equity financed, and the cost of the capital 12%. Tax rate is 30%. 0 1 100,000 2 105,000 EBIT 3 4 110,250 115,763 Taxes Net income Depreciation CAPEX Increase in net working capital (30,000) (31,500) (33,075) (34,729) 70,000 73,500 77,175 81,034 80,000 80,000 80,000 80,000 (400,000) (100,000) (100,000) (100,000) (100,000) (20,000) (1,000) (1,100) (1,200) (1,300) 1. What is the project free cash flow at the end of year 3? 2. If the terminal value of the project is 3 times the EBITDA of the 4th year, how much is the terminal value of the project? 3. How much is the net present value of this project with the terminal value derived in previous question? 4. If the terminal value of the project is calculated with Gordon growth model with growth rate of 3%, how much is the terminal value of the project? 5. How much is the net present value of this project with the terminal value derived in previous