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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

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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 $4,000,000 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: 230 Year four: 360 Year two: 280 Year five: 310 Year three: 320 If the sales price is $27,000 per car, variable costs are $18,000 per car, and forced costs are $1,400,000 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 O) 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) Inca Enter your answer in the answer box and then click Check Answer. WE 12 remaining Clear All Check Answer the lotter al.docx net cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 roplicas). The necessary foundry ment will cost a total of $4,000,000 and will be depreciated using a five-year MACRS life, The sales manager has an estimato for the sale of the classic derbirds. The annual sales volu Data Table one: 230 two: 280 three: 320 MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table operating cash flow if the tax rate ginning of the project (year 0) and is sales price is $27,000 per car, The equipment is sold for saly sed back to its original level in the what is the annual operating ca (Round to the nearest dollar.) Year 3-Year 33.33% 44.45% 14,81% 7.41% 1 2 3 4 5 6 7 8 9 10 11 5-Year 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 7-Year 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% 10-Year 10.00% 18.00% 14.40% 11.52% 9.22% 7.37% 6.55% 6.55% 6.55% 6.55% 3.28% Print Dono Done your answer in the answer bd

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