Part II: Answer the following questions in the space provided 1. The BBA Corporation, a firm in the 34% marginal tax bracket with a 12% required rate of return (discount rate), is considering a new project. This project involves the introduction of a new product. This project is expected to last 5 years and then the product line will be terminated. Cost of new plant and equipment: $6,900,000 Shipping and installation costs: $100,000 Salvage value at termination: $50,000 Unit sales: Year Unit Sold 1 80,000 2 100,000 3 120,000 4 70,000 5 70,000 Sales price per unit: $190/unit in year 1-4, $250/unit in year 5 Variable cost per unit: $130/unit Annual fixed costs: $300,000 Working capital requirements: There will be an initial working capital requirement of $150,000 just to get the production started. For each year, the total investment in net working capital will equal 5% of the dollar value of sales for that year. Thus, the total investment in net working capital will increase during years 1 through 3, then decrease in year 4. Finally, all working capital is liquidated at the termination of the project at the end of year 5. The depreciation method: Use the simplified straight-line method over 5 years. It is assumed that the plant and equipment will have $50,000 salvage value at the end of year 5. Given the above information, determine the free cash flows associated with the project (tabulate your answer on a year by year basis), Please apply the appropriate decision criteria including the project's net present value, profitability index, IRR, MIRR, and payback period and discounted payback period. Please show detailed calculation of cash flows and each criteria by using financial calculator (including steps) for marks. Please indicate your conclusion based on your calculation. (20 Marks)