(Related to Checkpoint 12.1) (Calc acing project cash flows and NPV) You are considering expanding your product line that currently consis, of skateboards to include gas-powered skateboards, and, hal you can sell 8,000 of these per year fo, iu years (after which time this project is expected to shut down with som vered skateboards taking ove. The gas skateboards would sell for $120 each with variable costs of $50 for ear produced, and annual fixe. 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 twe to zero over 10 years. The project will also require a one-time initial investment of $40,000 in net working caph._ sociated 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 37 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 a. The initial cash outlay associated with this project is $. (Round to the nearest dollar.)