Red Checkt 12.1) (Caletashows and NBV) You and your names fortes cadere 9.000 of the per year for 10 years with this project boxpected to shut down the board which produced and contacted with action wou 140 000 others would be 100 000 euro the purchase of what expens will be deated using the medio down to 10 The project will nemen of 60000 and the working capital wwwcowed when shut down in the map What the cash bayssed with this? b. What are the annual cash flow this proforysanth When the family to me to come to my add cash flowed with meat or the properti d. What is the projecte NPV given required from percent? The inaththyociated with project Round in the more dalle Question Help (Related to Checkpoint 12.1) (Calculating project cash flows and NPV) You are considering expanding your product line that currently consists of skateboards to include gas powered skateboards, and you feel you can sell 9,000 of these per year for 10 years after which time this project is expected to shut down with solar-powered skateboards taking over). The gas skateboards would sell for $130 each with variable costs of $25 for each one produced, and annual fixed costs associated with production would be $140,000 In addition, there would be a $1,500,000 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 down to zero over 10 years. The project will also require a one-time initial investment of 560.000 in net working capital associated with inventory and this working capital investment will be recovered when the project is hull down. Finally, assume that the firm's marginal tax rate is 33 percent. a. What is the initial cash outlay associated with this project? b. What are the annual net cash flows associated with this project for years 1 through 92 c. What is the terminal cash flow in year 10 (that is what is the free cash flow in year 10 plus any additional cash flows associated with termination of the project)? d. What is the project's NPV given a required rate of return of 13 percent? a. The initial cash outlay associated with this project is $(Round to the nearest dollar)