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Jse the following for questions 37 - 39: Microsoft is considering producing a new gaming system. This will be a four year project. a. New

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Jse the following for questions 37 - 39: Microsoft is considering producing a new gaming system. This will be a four year project. a. New equipment will cost $10,000,000 and will be fully depreciated on the straight-line basis to zero in five years. b. The project requires an initial investment in net working capital of $2,500,000 (which will be recaptured at the end of the project. c. Microsoft paid $3,000,000 last year for market research regarding the demand for a new gaming system. d. At the conclusion of the project in four years, the equipment can be sold for $2,500,000 e. The new gaming system will directly generate $12,000,000 in revenues each year of the project's life. f. In addition to the revenues in c., the new gaming system will also decrease existing Xbox revenues by $3,000,000 each year of the project's life. 8. The new project is estimated to have expenses of $5,000,000 each year of the project's life. h. The firm's tax rate is 20%. Question 37 14 Question 37 (1 point) What is the initial investment (CFO) of this project? Question 38 (1 point) What is the terminal cash flow (the last cash flow of the project not including the OCF)? A/ Question 39 (1 point) What are the after tax OCFs for the project in years 1-4

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