The Spring Corporation, a firm in the 34% marginal tax bracket with a 15% required rate of return or cost of capital, is considering a new project. The project involves the introduction of a new project. This project is expected to last 5 years and then be terminated. Given the following information, determine the free cash flows associated with the project, the project's net present value, the profitability index, and the internal rate of return. Apply the appropriate decision criteria.

Cost of new plant & equipment	$6,900,000
Shipping & installation costs	$100,000
Market Research Costs Already Incurred	$75,000
Unit Sales	Year 1- 80,000 Year 2-100,000 Year 3-120,000 Year 4-70000 Year 5-70000
Variable Cost Per Unit	$130/unit
Annual Fixed Cost	$300,000 per year
Working Capital Requirements	There will be an initial working-capital requirement of $100,000 just to get production started. For each year, the total investment in net working capital will be equal to 10 percent of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 through 3, then decrease in year 4. Finally all working capital is liquidated at the termination of the project at the end of year 5.
Depreciation Method	Assume simplified straight-line depreciation over 5 years with no salvage value.

Check Figures

Year 0	-$7,100,000.00
Year 1	$4,714,000.00
Year 2	$7,698,000.00
Year 3
Year 4	7,072,000.00
Year 5	$5,262,000.00

Full Points for showing work