sugar land company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by a mba student. the production line would be set up in unused space (market value of zero) in sugar land main plant. total cost of the machine is $190,000. the machinery has an economic life of 4 years, and macrs will be used for depreciation. the machine will have a salvage value of 30,000 after 4 years. the new line will generate sales of 1,300 units per year for 4 years and the variable cost per unit is $100 in the first year. each unit can be sold for $200 in the first year. the sales price and variable cost are expected to increase by 3% per year due to inflation. further, to handle the new line, the firms net working capital would have to increase by $30,000 at time zero (the nwc will be recouped in year 4). the firms tax rate is 40% and its weighted average cost of capital is 10%. a. what are the annual depreciation expenses for years 1 through 4? (10 points) year 1 year 2 year 3 year4 depreciation b. calculate the annual sales revenues and costs (other than depreciation), years 1 through 4. (15 points) year 1 year 2 year 3 year4 $ sales $ variable costs c. estimate annual (year 1 through 4) operating cash flows (25 points) year 1 year 2 year 3 year4 sales ocf d. estimate the after tax salvage cash flow (5 points) e. estimate the cash flow of this project (25 points) year zero year 1 year 2 year 3 year4 cf of the project f. estimate the npv, irr, mirr, and profitability index of the project. (20 points) npv = irr = mirr = pi