Mini-Case Study: Capital Budgeting with Fresnol Lonses Fresnel Enterprises, Ine is embarking on a new venture with a partner mansfacturng company China. Fresnet has designed a new line of screen guards for smartphones that not ofly protect screens, bud also act as a magrifying glass They erpect the new screen gualds to be particularfy popular with retsees in the United States. so are aready planing a markesing campaign targeting the Flonida and Aritona tharkets However, while Fresnel can manage design, maketing, and Sstribution in the Uhited States, they bave sute manufacturing experfise. So they have hired a costract manufacturer in China to havolo actual prodoction. Fresnel will supply the nitial hvestment dolars needed to set up the production and assembly ines in China, and then pay their partecr a modest fee for each une preduced. Snce they are handing distrbution, there will aso be soene working capital investments required Fresnel is planning a 5 -year tme horiton for this project. As the end of year 5 , the ecmpany will liqudate the assats from the project. Air assets wil have been fuly depreciated A lst of facts and assurretions, ineluding sales forecasts for the lfe of the propect are grven in the tabies to the nght. Provide a financial analysis of this project to help determine if it should be pursued: a) Using the information provided, ereate smple intome statements for each year of the propet Calcuate the annual Operating Inceme (EEIT) and Net income. b) Create an analysis of the Working Capital needs atd changes for each year isee the table at the top of page 263 of the tertpock for an example) c) Determine the Free Cash Flow for each year of the project d) Calculate the projects NPV. BCFR, and iRR e) Eased on your analysis, very briefy explain whethee this project should be pursued and why. Create your Original Solution Below - Be sure to show all calculations, to carefuldy complete all parts of the asuichn