**, Opa B12-2 (book/static) Question Help (Determining relevant cash flows) Landcruisers Plus (LP) has operated an online store setting off-road truckparts. As the name mples, the firm specializes in parts for the verble Toyota F40 known throughout the world for its durability and offroad prowess. The fact that Toyota stopped building and exporting the FM to the US market in 1902 meant that was perde mon and more on re-manufactured puts to keep their beloved off-road vehicles turning. More and more F10 owners are replacing the original line seiner engines with a modem Antercan buitenge Therone replacement requires maling the new engine with the Toyota driver LP's owners had been offerte engine adaptor kits for some time but have recently decided to begin buting the own unte. To make the adapter is the im would need to invest in a variety of machine tools cosing a total of $700.000, LP's management estimates that they will be able to borrow $400.000 from the firm's bank and pay percent interest. The remaining funds would have to be siled by LPs own The firm estimates that they will be able to sell 1.000 units a a year for 51,300 mach. The units would cost $1,000 each in cash expenses to produce this does not include erection expense of $70,000 per yw or interest expense of 532.000). Aber all expenses, the firm expects Gaming before interest and taxes of 230,000. The firm pay taxes equal to 30 percent, which results in net income of 5129.000 per your over the 10-year expected of the equipment What is the annual free cash flow LP should expect to receive from the investment in your assuming that does not require any other investments in other capital equipment or working capital and the equipment is depreciated over a 10-year life to a zero salvage and book value? How should the financing cost associated with the $400.000 can be incorporated into the analysis of cash flow? a. The financing cost associated with the $400,000 loan be incorporated into the analysis of cash flow. (Select from the drop-down menu) 2. What is the annual free cash flow LP should expect to receive from the investment in year 1 assuming that it does not require any other investments in other capital equipment or working capital and the equipment is deprecated over a 10-year life to a zero salvage and book value? How should the financing cost associated with the $400,000 loan be incorporated into the analysis of cash flow? b. of the firm's required rate of return for its investments is 10 percent and the investment has a 10-year expected to what is the anticipated NPV of the investment a. The financing cost associated with the S400.000 be incorporated into the analysis of cash flow. Select from the drop down menu.)