Vertical Inc. manufactures financial calculators. The company is deciding on whether or not to introduce a new calculator. If they choose to, the calculator will sell for $85. The company feels that sales will be 13,500, 13,900, 14,000, 14,200, and 13,000 units per year for the next 5 years. Variable costs will be 30% of sales, and fixed costs are $250,000 per year. Vertical hired a marketing team to analyze the viability of the product, and the marketing analysis cost $1,000,000. The company plans to use a vacant warehouse to manufacture and store the financial calculators. Based on a recent appraisal the warehouse and the property is worth $2.2 million on an after tax basis. If the company does not sell the property today, then it will sell the property 5 years from today at the currently appraised value. This project will require an injection of net working capital at the on set of the project in the amount of $50,000. This net working capital will be fully recovered at the end of the project. The firm will need to purchase some equipment in the amount of $500,000 to produce the new calculators. The machine has a 7 year life and will be depreciated using the straight-line method. At the end of the project, the anticipated market value of the machine is $150,000. The firm requires an 8% return on its investment and has a tax rate of 21%. Using this information, find the following:

a.) Calculate the net present value for the project (round to 2 decimals)

b.) Calculate the cash flow from assets at the end of year 5 (round to 2 decimals)

c.) Calculate the initial cash outflow (i.e. the time 0 cash flow) (enter a negative value and round to 2 decimals)

d.) Calculate the operating cash flows at the end of year 1 (round to 2 decimals)

e.) Calculate the after tax salvage value at the end of year 5 (round to 2 decimals)

f.) Calculate the depreciation expense at the end of year 2 (round to 2 decimals)

g.) Calculate the book value of the machine at the end of year 5 (round to 2 decimals)

h.) Calculate the net working capital injection at the beginning of the project (enter a positive value and round to the nearest dollar)

i.) Calculate the opportunity cost of the project (enter a positive value and round to the nearest dollar)

j.) Calculate the sunk cost of the project (enter a positive value and round to the nearest dollar)