ne.instructure.com/courses/4548/quizzes/31602/take Question 8 6 pts TAKEREST Ltd, a manufacturer of toy robots, is evaluating a proposal to introduce a new pet robot, named MIMIC, to be added to its current range. This robot production will continue for the next five years before the introduction of another advanced model. Further details relating to this MIMIC project are provided by the company: Overall production plant for MIMIC requires an up-front cost of $3,000,000. The plant will be depreciated on a straight-line basis to zero over five years. At the end of the project, the plant can be sold at an estimated market price of $900,000. The project will require a $700,000 investment in inventory, and the company expects that its accounts payable will rise by $250,000. At the end of the project, the net working capital would be recovered fully. The company estimates that sales of MIMIC will total $1,900,000 in each of the next five years. The impact on sales of other existing products of TAKEREST is expected to be negligible. The operating costs, excluding depreciation, are expected to be $800,000 each year. Production of the MIMIC will take place in a recently vacated factory that the company owns. Currently, the factory is leased out for $120,000 in rent per year for the company. The company tax rate is 30%, and the project's required rate of return is 12%. Required: Use a table to illustrate initial investment and future cash flows relating to the project. Edit View Insert Format Tools Table