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Problem 31 Intro Your company is considering a project to produce electric scooters. You've spent $10,000 already on a market research study that projects the

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Problem 31 Intro Your company is considering a project to produce electric scooters. You've spent $10,000 already on a market research study that projects the following unit sales: A B D E 1 Year 1 2 3 2 Units 0|1,200 1,320 1,452 0 After 3 years, the market will be saturated and you will shut down production. Each scooter is expectd to sell for $210 and will incur variable costs of $147 for labor and materials. In addition, you'll incur fixed costs of $50,400 every year. You will need a new machine to produce the scooters. If you buy the machine now (year 0), it will start producing scooters next year (year 1). The machine costs $75,000 to purchase. The machine can be depreciated straight-line to zero over 5 years and can probably be sold for $37,500 after 3 years Your company has a weighted average cost of capital of 17% and a marginal tax rate of 21%. Part 1 - Alfempt 1/10 for 10 pts What is the after-tax salvage value of the machine in year 3? 0+ decimals Submit - Attempt 1/10 for 10 pts Part 2 What is the free cash flow now (year 0)? 0+ decimals Submit FE- Attempt 1/10 for 10 pts Part 3 What is the free cash flow in year 3? 0+ decimals Submit - Attempt 1/10 for 10 pts. Part 4 What is the NPV of the investment? 0+ decimals Submit

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