- We assume that the company you selected is considering a new project. The project has 11 years' life. This project requires initial investment of $320 million to purchase equipment, and $15 million for shipping & installation fee. The fixed assets fall in the 10-year MACRS class. The salvage value of the fixed assets is 10% of the purchase price (including the shipping & installation fee). The number of units of the new product expected to be sold in the first year is 1,200,000 and the expected annual growth rate is 7.5%. The sales price is $150 per unit and the variable cost is $110 per unit in the first year, but they should be adjusted accordingly based on the estimated annualized inflation rate of 2.0%. The required net operating working capital (NOWC) is 11% of sales. Use the corporate tax rate of 8.7%. WACC is 6.2%. Estimate annual cash flows for the 11 years. - Draw a time line of the cash flows