Tholo Manufacturing Company is considering an investment project: producing pink colored tennis balls. The estimated life of the project: 5 years. The cost of test marketing: $250,000. Would be produced in a vacant building owned by the firm; the property can be sold for $150,000 after taxes. The cost of a new machine: $100,000. The estimated market value of the machine at the end of 5 years: $30,000. Production by year for the 5-year life: 5,000 units, 8,000 units, 12,000 units, 10,000 units, and 6,000 units. The price of tennis balls in the first year: $20 each. The price of tennis balls will increase at 2% per year. No debt financing; no interest expenses. First-year production costs: $10 per unit. Production costs will increase at 10% per year. Incremental/marginal corporate tax rate: 34%. An initial investment (at year 0) in net working capital: $10,000. NWC at the end of each year will be equal to 10% of sales for that year. NWC at the end of the project is zero. The machinery will be depreciated on a straight line. Required: a. Lay out the relevant cash flows to the project. (25 marks) b. Calculate the NPV of the project if the discount rate is 10%. (5 marks)