The cost of ball is $ 100000 and it is expected to last five years based on MACRS system. At the end of five years, the ball will be sold at the price estimated to be $ 30000 .Production by year during the five year life of the machine is expected to be as follows, 5000 units, 8000 units, 12000 units, 10000 units and 6000 units.The price of ball in the first five year will be $ 20. They believe price of ball will increase at only 2 percent per year, production cash outflows are expected to grow at 10 percent per year. First year production costs will be $ 10 per unit. Based on taxable income that the appropriate incremental corporate tax rate in the ball project is 34 percent. Management determines that an initial investment (at year 0)in net working capital of $ 10000 is required.Net working capital at the end of each year will be equal to 10 percent of sales of that year. In the final year of the project, net working capital will decline to zero as the project is wound down. Cost capital is 10%. a)Calculate the cash flows of this company. b)Evaluate the project using Net Present Value method.