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Use the following information to answer the 3 questions [lling in the blanks} that follow it. When answering the questions, DID NOT use duller signs,

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Use the following information to answer the 3 questions [lling in the blanks} that follow it. When answering the questions, DID NOT use duller signs, USE commas to separate thousandsr DO NOT use parenthesis to denote negative numbers. USE the negative sign and place it in front of rst digit of your answer when your answer is a negative number. Round to the nearest lil in order to give room for rounding errors [do not enter decimah} for example it go obtain impugn then enter 1.2m. RET Inc. has decided to manufacture and sell a new line of high-priced commercial stoves. Projected sales for the new line of stoves in annual units for the next it} years are 5,030 a year. The sales price is $1.2m per stove, the variable costs are $343 per stover and xed costs are $1,{],{1t} annually. The plant and equipment required for producing the new line of stoves costs $2.{],{}l] {today} and will be depreciated down to zero over it] years using straight- line depreciation. The plant and equipment is sold for $d, at the end of it] years. Net working capital increases by $5t}, at the beginning of the project {year } and it is reduced hack to its original level in the nal year. The tax rate is 25 percent and the discounting rate for the project is 1095. :'I. What is the incremental cash flow for this project in year i)? :] g 2. What is the annual Net: Income {NI} for this project in year 3? [do not enter $ sign} :] A", 3. What is the annual operating cash flow {DEF} for this project in year 3? [do not enter $ sign} :] g 4. What is the book value for the plant at: equipment at the end of year it)? [do not enter$ sign] :] A", 5. What is the after-tax cash flow of the plant and equipment at disposal {salvage}?I [do not enter $ sign} :] 5; s. What is the incremental cash flow for this project o_t the end of Er LID? {do not enter $ sign} :] in"; 3'. What is the Net Present Value {NPV} for this project? '" Please round to nearest thousand in order to accommodate for rounding errors. Example: if you obtain $1,245,6TB then enter 1,245 [do not enter $ sign} :] lg E. The project should be rejected or accepted? In your response only type either accepted or rejected :15

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