Question Help Calculating free cash flows) You are considering new elliptical trainers and you feel you can sell 3,000 of these per year for 5 years (after which time this project is learmed that being fit is unhealthy). The elliptical trainers would sell for $1,600 each and have a variable cost of $800 each. The with production would be $1,500,000. In addition, there would be a $3,000,000 initial expenditure associated with the purchase of new production equipment. It is assumed that this initial expenditure will be depreciated using the simplified straight-line method also require a one-time initial investment of $1,200,000 in net working capital associated with inventory, and that working capital project is shut down. Finally, assume that the firm's marginal tax rate is 32 percent. a. What is the initial outlay associated with this project? b. What are the annual free cash flows associated with this project for years 1 through 47 down to zero over 5 years. This project will investment will be recovered when the What is the terminal cash flow in year 5 (that is, what is the free cash tow in year 5 plus any aditional a. Whait is the initial outlay associated with this project? $4200000 (Round to the nearest dollar) b. What are the annual free cash flows associated with this project for years 1 through 4 (note s (Round to the nearest dolar.) cash flows associated with the termination of the project)? that the cash flows for years 1 through 4 are equal)