P\&G Corporation is considering a project with an initial fixed asset cost of $2.5 million which will be depreciated straight-line to a zero book value over the 5 -year life of the project. At the end of the project the equipment will be sold for an estimated $300,000. The project will not directly produce any sales but will reduce operating costs by $725,000 a year. The tax rate is 35%. The project will require $45,000 of inventory which will be recovered when the project ends. a. Calculate the initial cash flow at time 0 . b. Calculate the annual operating cash flows. c. Calculate the project cash flow at the end of year 5 . d. The firm requires a 14% rate of return. What is the NPV for the project