$($Related to Checkpoint $12\mathrm{.}1)($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 $12,000$ 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 $$130$ each with variable costs of $$50$ for each one produced, and annual fixed costs associated with production would be $$140,000.$ In addition, there would be a $$1,400,000$ 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 $$30,000$ in net working capital associated with inventory, and this working capital investment will be recovered when the project is shut down. Finally, assume that the firm's marginal tax rate is $38$ 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 $9?$

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$)?$

a$.$ The initial cash outlay associated with this project is $

$($Round to the nearest dollar.$)$

b$.$ The annual net cash flows associated with this project for years $1$ through $9$ are $

$($Round to the nearest dollar.$)$

c$.$ The terminal cash flow in year $10($that is$,$ the free cash flow in year $10$ plus any additional cash flows associated with termination of the project$)$ is $ $($Round to the nearest dollar.$)$

d$.$ Given a required rate of return of $12\%,$ the project's NPV is $

$($Round to the nearest dollar.$)$