The managers of PonchoParts, Inc. plan to manufacture engine blocks for classic cars from the 1960s. They expect to sell 250 blocks annually for the next 5 years. The necessary foundry and machining equipment will cost a total of $800,000 and will be depreciated on a SL basis to zero over the project's life. The firm expects to be able to sell the equipment for $150,000 at the end of 5 years. Labor and materials costs total $500 per engine block, fixed costs are $125,000 per year. Assume a 35% tax rate and a 12% discount rate.

Question 1:What is the expected after-tax cash flow to the firm when the equipment is sold in year five?

Question 2:Assume that management believes that auto restorers will pay $3,000 per block. What is the NPV of this project?

Question 3:Assume that management believes that auto restorers will pay $3,000 per block. What is the PI of this project?

Please give me the formulas you used and order of operations