Nike is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years, it will be depreciated on a straight-line basis, and there will be no salvage value. No change in net operating working capital would be required. This is just one of many projects for the firm, so any losses on this project can be used to offset gains on other firm projects. What is the project's expected NPV? In your support show the projected cash flows for each year and how you calculated the NPV. Do not round the intermediate calculations and round the final answer to the nearest whole number.

WACC=10%

Net Investment cost: $200,000

Units sold: 43,000

Average price per unit Year 1: $25

Fixed Opportunity Cost excl. depr. =$150,000(CONSTANT)

Variable Opportunity Cost/ unit Year 1: $20.20

Annual Depreciation Rate: 33.333%

Expected Inflation rate per year: 5%

Tax Rate: 40%

MUST ANSWER FOR t=1, t=2, t=3. PLEASE SHOW WORK

T=1 T=2 T=3

Sales Revenue:

Fixed Cost:

Variable Costs:

Depreciation:

Operating Income(EBIT)

Taxes

EBIT(1-T)

Depreciation

Project Cash Flows

NPV=