(Show work, please!)

A business is considering the purchase of a new manufacturing facility to produce drones that would cost $2,650,000. The facility is to be fully depreciated on a straight line basis over 3 years. It is expected to have a scrap resale value of $250,000 at the end of 3 years. Toxic waste cleanup, at the end of the project life, is expected to cost $500,000, after taxes. operating revenues from the facility are expected to be $1,950,000, and production costs are estimated at $525,000 for all years of operation, starting in T1. No inflation is expected. If the project is undertaken, a working capital investment of $250,000 is expected at the time of facility purchase, with full recovery at the end of the project life. The company uses a 9% discount rate for these types of projects; the corporate tax rate is 40 percent. Bee- Drone has other ongoing profitable operations.

b. what is the initial outlay for the project in year To?

c. estimate the operating cash flows from the project for years T1 through T3 and show them in income statement form. Draw a timeline and show the final operating CF for each year below.

d. estimate the terminal value cash flow in year 3, if any (that is, are there any additional cash flows in year 3 in addition to the operating cash flow?).

e. What is the project's NPV?