P12-14 (similar to) Question Help Related to Checkpoint 12.1) (Calculating project cash flows and NPV) You are considering expanding your product in the currently consists of skateboards to includes powered skateboards and you feel you can sel 8.000 these per year for 10 years (Wher which time this project is expected to shut down with solar powered skateboards taking over the gas skateboards would sell for $120 each with variable costs of $25 for each one produced, and annu fred costs associated with production would be $100,000. In addition, there would be a $1.200.000 wil expenditure associated with the purchase of new production comenta assumed that this is expenditure will be depreciated using the simplified straighting method Gown to roro over 10 years. The project wil to require a one-time initiativement of $30,000 in not working capital sociated with inventory, wd his working capital investment wl be recovered when the project is shut down. Finally, assume that the firm's marginal tax rate is 38 percent What is the initial cash outlay siled with this project? 1. What are the wall cash flows sociated with project for years through c. What is the terminal cash flow in year 10 (that is what is the tree cash flow in year 10 plus any additional cash flows associated with termination of the project? d. What is the projects NPV given a required rate of retum of 13 percent The initial cash outly associated with this project is (Round to the nearest dolar) 2 Enter your answer in the answer box and then click Check Answer Check Arewer Clear All Microsoft PowerPoint 3 remaining