Mr. Piko Taro is a CEO of PPAP, Inc., a firm that manufactures high quality pens and produces apples and pineapples. Taro is considering replacing an old pineapple picking machine, which was bought for $2.5 million five years ago, with a new semi-auto pineapple picking machine. The new machine can be purchased for $3 million and it costs $250,000 to have it delivered and installed today. When the old machine was purchased five years ago, the machine was to be depreciated according to a 5-year MACRs schedule. Taro believes that the old machine can be sold for $200,000 today if the firm decides to replace it with the new one. The new machine will be depreciated using the straight- line method over a 5 year life. The projected sales of pineapples harvested by the new machine will be $850,000 in Year 1, after which the sales will grow at a rate of 15 percent each year. Total fixed costs are $115,000 per year, while variable costs are 15 percent of each year's sales. After 5 years, the firm will stop pineapple production and sell the machine for $350,000. Net working capital of $200,000 will be required immediately (Year 0) as well as in each year. PPAP's tax rate is 21 percent. Taro has hired you as a consultant: He wants you to estimate the project's NPV and other discount cash flow criteria. Q1. What is the project's Year 0 net cash flow? Round your answer to two decimal places. (10 pts Q2. Calculate the net cash flows for Years 1, 2, 3, 4, and 5. Round your answer to two decimal places. (5 pts*5 years=25 pts) Q3. What is the payback period? Round your answer to two decimal places. (5 pts) Q4. If the discount rate is 15 percent, what is the NPV? Round your answer to two decimal places. (5 pts) Q5. At exactly what discount rate should the firm be break-even, in terms of NPV? Round your answer to two decimal places. (5 pts)