We assume that the company that you selected is considering a new project. The project has 11 years life. This project requires an initial investment of $800 million to purchase equipment, and $35 million for shipping & installation fees. The fixed assets fall in the 10-year MACRS class. The salvage value of the fixed assets is 15% of the purchase price. The number of units of the new product expected to be sold in the first year is 2,500,000 and the expected annual growth rate is 5%. The sales price is $318 per unit and the variable cost is $268 per unit in the first year, but they should be adjusted accordingly based on the estimated annualized inflation rate of 8.3%. The required net operating working capital (NOWC) is 13.8% of sales. WACC = 6.25% and the Corporate Tax Rate is 15.6%. Compute the depreciation basis and annual depreciation of the new project. You can refer to Table 11A-2 MACRS allowances on pp.496 in the textbook. -Estimate annual cash flows for all years. -Draw a timeline of the cash flows.