We assume that the company is considering a new project. The project has 11 years' life. this project requires initial investment of $680 million to purchase equipment, and $25 million for shipping and installation fee. The fixed assets fall in the 10 year MARCS class. the number of units of the new product expected to be sold in the first year is 2,560,000 and the expected annual growth rate is 5.5%. the sales price is $255 per unit and the variable cost is $200 per unit in the first year, but they should be adjusted accordingly based on the estimated annualization inflation rate of 1.8%. The required net operation working capital (NOWC) is 12% of sales. the corporate tax rate is 27%. the project is assumed to have the same risk as the corporation, so you should use the WAAC obtained as the discount rate. the WACC is 8.5%

WACC = 8.5%

Corporate tax rate = 27%

1. compute the depreciation basis and annual depreciation of the new project.

2. estimate annual cash flows for the 11 years.

*NEED done asap, and could you provide as much work as posisble to reference for better understanding*

MARCS depreciation table provided below if needed...

Ownership year 1 2 10-year MARCS 10% 18% 14.40% 11.52% 4 5 6 7 8 9.22% 7.37% 6.55% 6.55% 6.56% 6.55% 3.28% 9 10 11 U