Project cash flow and NPV$.$ The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds $(1957$ replicas$).$ The necessary foundry equipment will cost a total of $$4,100,000$ and will be depreciated using a five$-$year MACRS life,

$$ The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows:

Year one: $250$

Year four: $380$

Year two: $300$

Year five: $330$

Year three: $320$

If the sales price is $$30,000$ per car, variable costs are $$20,000$ per car, and fixed costs are $$1,300,000$ annually, what is the annual operating cash flow if the tax rate is $30\%$ Re equipment is sold for salvage for $$500,000$ at the end of year five. Net working capital increases by $$500,000$ at the beginning of the project $($year $0)$ and is reduced back to its original level in the final year. Find the internal rate of return for the project using the incremental cash flows.Project cash flow and NPV$.$ The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds $(1957$ replicas$).$ The necessary foundry equipment will cost a total of $$4,100,000$ and will be depreciated using a five$-$year MACRS life,

$$ The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows:

Year one: $250$

Year four: $380$

Year two: $300$

Year five: $330$

Year three: $320$

If the sales price is $$30,000$ per car, variable costs are $$20,000$ per car, and fixed costs are $$1,300,000$ annually, what is the annual operating cash flow if the tax rate is $30\%$ Re equipment is sold for salvage for $$500,000$ at the end of year five. Net working capital increases by $$500,000$ at the beginning of the project $($year $0)$ and is reduced back to its original level in the final year. Find the internal rate of return for the project using the incremental cash flows.