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Question Help (Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Trald Winds Corporation, a firm in the 31 percent marginal

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Question Help (Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Trald Winds Corporation, a firm in the 31 percent marginal tax bracket with a required rate of return or discount rate of 13 percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then, because this is somewhat of a fad product it will be terminated. Given the following information, determine the free cash flows associated with the project, the project's net present value, the profitability index, and the internal rate of return. Apply the appropriate decktion criteria a. Determine the free cash flows associated with the project The FCF in your Oiss (Round to the nearest dollar) Data Table Cost of new plant and equipment: Shipping and installation costs: Unit sales: $15,000,000 $170,000 Year 1 2 3 4 Units Sold 80,000 135,000 135,000 90,000 80 000 a Sales price per unit Variable cost per unit Annual fixed costs Working-capital requirements $290/unit in years 1 through 4. $240/unit in year 5 $ 160/unit $600.000 There will be an initial working capital requirement of $220,000 to get production started. For each year the total investment in net working capital will be equal to 8 arent the alla falon for that. There Done Data Table 4 5 90,000 80,000 Sales price per unit Variable cost per unit: Annual fixed costs: Working-capital requirements: $290/unit in years 1 through 4, $240/unit in year 5 $160/unit $600,000 There will be an initial working capital requirement of $220,000 to get production started. For each year, the total investment in net working capital will be equal to 8 percent of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 through 3, then decrease in year 4. Finally, all working capital is liquidated at the termination of the project at the end of year 5. Use the simplified straight-line method over 5 years. It is assumed that the plant and equipment will have no salvage value after 5 years The depreciation method: Print Done

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