Problem: Casual Threads currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $49 each with expected sales of 3,600 tops annually. By adding the fleece tops, management feels the firm will sell an additional 220 pairs of jeans at $59 a pair and 350 fewer T-shirts at $18 each. The variable cost per unit is $36 on the jeans, $9 on the T-shirts, and $21 on the fleece tops. Consider this a four-year project, for which a $100,000 capital investment will be made to manufacture the new item. This will generate depreciation expense of $25,000 a year. The fixed costs are $52,000 annually. The tax rate is 34 percent. If the company is applying a 20% discount rate, what is the project's operating cash flow and net present value? What is the internal rate of return? Assignment: Complete an Excel spreadsheet that shows a pro forma income statement, Cash Flow From Assets and NPV and IRR calculation using the above data.