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 $3,900,000 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 two: 300 Year three: 350 Year four: 350 Year five: 310 If the sales price is $30,000 per car, variable costs are $20,000 per car, and fixed costs are $1,100.000 annually, what is the annual operating cash flow if the tax rate is 30%? The equipment is sold for salvage for $500,000 at the end of year five. Net working capital increases by $600,000 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. First, what is the annual operating cash flow of the project for year 1? $(Round to the nearest dollar.) Data Table MACRS Fixed Annual Expense Percentages by Recovery Class 10-Year 10.00% 18.00% 14.40% 11 .52% 9.22% 5- Year 20.00% 32.00% 19.20% 11.52% 11.52% 576% 7-Year 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% 3-Year 33.33% 44.45% 14.81% 7.41% Year 6.55% 6.55% 6.55% 6.55% 3.28% 10 Enter your answer in the answer box and then click Check Answer What is the annual operating cash flow of project in year 1? What is the annual operating cash flow of this project in year 2? What is the annual operating cash flow of this project in year 3?_ What is the annual operating cash flow of this project in year 4? What is the annual operating cash flow of this project in year 5? What is the book value of the equipment after five years? What is the gain (or loss) for the sales of the equipment after 5 years? Round to nearest dollar Round to nearest dollar Round to nearest dollar Round to nearest dollar Round to nearest dollar Round to nearest dollar dollar What is the after-tax cash flow of the equipment at disposal? What is the NPV of the project? What is the incremental cash flow of the project in year 0? What is the incremental cash flow of the project in year 1? What is the incremental cash flow of the project in year 2? What is the incremental cash flow of the project in year 3? What is the incremental cash flow of the project in year 4? What is the incremental cash flow of the project in year 5? Round to nearest dollar Round to nearest dollar What is the NPV of the project