-Roberto Corp. is considering expanding into diet foods by producing organic meal replacement products. Robert, the CEO of the company estimates this project to have 4 years of life. Last year, Robert, paid a marketing research firm $500,000 to study the possible consumers demand for this product in the greater Houston area. Roberto thinks that sales will be $1,000,000 during the first year, $1,500,000 during the second and third years, and $2,000,000 during the fourth year. The total operating expenses associated with production (excluding depreciation) would be $1,000,000 per year. In addition, there would be a $4,000,000 initial expenditure associated with the purchase of new production equipment. The equipment will be depreciated over 4 years to zero salvage value using straight-line method. At the start of the project, the inventory account will increase by $500,000, the accounts receivables will increase by $300,000 and the accounts payable will increase by $150,000. Roberto also predicts that the introduction of this product will decrease the sales of the companys existing packaged meals. The company estimates that $150,000 per year after tax basis will be the resulting loss in sales of the packaged meals. At the end of the 4th year, the company estimates selling the production equipment for $250,000. The firms marginal tax rate is 25 percent and the cost of capital used for this project is 12%.

a) What is the initial outlay at time 0?

b) What is the cash flow for year 1 to be used in NPV calculations?

c) What is the non-operating cash flow for year 4?

d) What is the NPV of this project?

please show all steps and calculations without excel. Thanks!!