ject cash low and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas) The necessary foundry equipment wil cost a total of s3,900,000 and will be depreciated using a five-year MACRS life, EEB. The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows Year four. 370 Year five: 300 ear one Year two 270 three: 350 ear If the sales price is $28,000 per car, variable costs are $18.000 per car and fixed costs are $1,400,000 annually, what is the annual operating cash flow if the tax rate is 309 The equipment is sold for salvage for $500,000 at the end of year five. Net working capital increases by S600 000 at the beginning of the project year 0 and is reduced back to its original evel in the final year. Find the internal rate of return for the project using the incremental cash flows