Please do it correctly or I'll downvote.

Calculate the NPV of the Electrobicycle project. Be sure to show your NPV calculations. Explain, in your own words, why working capital investments are subtracted each year in the Explain, in your own words, the meaning of the required rate of return for the project. Assume the auto company has a required rate of return of 15%. Based on the required rate of birthday date), is the Electrobicycle project more or less risky than the auto company? Explain Based on your concluded NPV, should the company invest in this project to build Electrobicy Problem: A large auto company has just completed the research and development (R&D) on a new product, the Electrobicycle. The Electrobicycle is an electronic, climate-controlled bicycle with zero emissions. The R&D efforts focused on developing the capability to utilize electricity to power bicycles. Ultimately, the auto company expects Electrobicycles to be popular for most urban citizens due to convenience and low cost. The R&D, which cost $3 million, is complete and paid for. The plant and equipment to mass produce the Electrobicycles will cost $2 million. This plant and equipment will be depreciated over 5 years using the straight-line method to zero book value ($400,000 per year). A working capital investment of $1 million will be needed at the beginning of the project. A working capital investment of $200,000 per year will be needed thereafter. At the end of 5 years, the auto company believes there will be no more sales opportunities for Electrobicycles and will cease all production. Thus, at the end of the project, all working capital investments (the $1 million initial investment and the $200,000 per year) will be recovered at full value. The plant and equipment will be scrapped for a salvage value of $300,000 (after tax). The company expects moderate sales in years 1 and 2, and then significant growth in each year thereafter as consumers adopt the Electrobicycles. Revenues and earnings will cease at the end of Year 5. The revenues, after-tax earnings, and cash flow for the 5-year life of the project are shown in this table. Table 1 Projected Electrobicycle Financial Projection Numbers in $000's Today Year 1 Year 2 Year 5 Revenues After-tax earnings $1,000 ($500) $1,500 $100 Year 3 $3,000 $300 Year 4 $6,000 $600 $12,000 $1,200 Project Cash Flow $100 $400 ($500) $400 $300 $600 $400 $1,200 $400 $400 ($2,000) $0 $0 $0 $0 $0 After-tax earnings Plus: Depreciation Less: Cost of plant, equipment Less: Working capital Plus: Recovery of working capital Plus: Salvage value Annual project cash flow ($1,000) ($200) ($200) ($200) ($200) ($200) n/a n/a n/a n/a $2,000 n/a n/a n/a n/a $600 ($300) $300 $500 $800 $4,000 Note: n/a = not applicable Calculate: Determine the NPV for the Electrobicycle project. Use the annual project cash flow from the table above. For the required rate of return, use the percent value from your birthday date. For example, if your birthday falls on the 16th of the month, the required rate of return would be 16%. For guidance, review Section 7.1 of the textbook, NPV Example: The Pizza Scooter Delivery Project Revisited. A) Mr. Paul, who is currently 45 years old, is your client. He, now, wants to begin saving for retirement. You advised him to put $ 15,000 a year into the stock market. You estimate that the market's return will be, on average, 12 percent a year. Assume the investment will be made at the end of the year. I. If the client follows your advice, how much money will he have by age 60? II. How much will she have by age 70? (B) Vanguard has just signed a 10-year lease to rent out office space for $ 100,000 per year. Payments are made at the beginning of each year. If the firm's interest rate is 7.65%, find the present value of the lease payments. (C) HBFC Corporation has just issued a 12-year bond, and it will be a 12% semi-annual coupon bond with a par value of $1,000. It is assumed that, it may be called back in 6 years at a call price of $1,120. The bond sells for $1,190. I. What is the bond's current yield? II. What is the bond's yield to call? (D) Alibaba Corporation is expanding rapidly, and it does not pay any dividends because it currently needs to retain all of its earnings. However, investors expect Alibaba to begin paying dividends, with the first dividend of $1.20