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% P12-22 (similar to) 18 Question Help (Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm

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% P12-22 (similar to) 18 Question Help (Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 33 percent marginal tax bracket with a required rate of return or discount rate of 12 percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then, because this is somewhat of a fad product, it will be terminated. Given the following information, E::, determine the free cash flows associated with the project, the project's net present value, the profitability index, and the internal rate of return. Apply the appropriate decision criteria. a. Determ X A Data Table The FCF Cost of new plant and equipment: Shipping and installation costs: Unit sales: $14,200,000 $180,000 Year Units Sold 80,000 115,000 115,000 90,000 80,000 Sales price per unit: Variable cost per unit: Annual fixed costs: Working-capital requirements: Enter your $290/unit in years 1 through 4. $240/unit in year 5 $120/unit $600,000 There will be an initial working capital requirement of $160,000 to get production started. For each year, the total investment in net working capital will be equal to 12 nercent of the dollar value of sales for that year 9 parts Check Answer remain

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