You are considering expanding your product line that currently consists of skateboards to include$$ gas$-$powered skateboards, and you feel you can sell $9,000$ of these per year for $10$ years$($after which time this project is expected to shut down with$$ solar$-$powered skateboards taking$$ over$).$ The gas skateboards would sell for $$$$70$ each with variable costs of $$$$30$ for each one$$ produced, and annual fixed costs associated with production would be $$$$170,000.$ In$$ addition, there would be a $$$$1,100,000$ initial expenditure associated with the purchase of new production equipment. It is assumed that this initial expenditure will be depreciated using the simplified$$ straight$-$line method down to zero over $10$ years. The project will also require a$$ one$-$time initial investment of $$60,000$ in net working capital associated with$$ inventory, and this working capital investment will be recovered when the project is shut down. $$ Finally, assume that the$$ firm's marginal tax rate is $32$ percent.

a$.$What is the initial cash outlay associated with this$$ project?

b$.$What are the annual net cash flows associated with this project for years $1$ through $9?$

c$.$What is the terminal cash flow in year $10($that is$,$ what is the free cash flow in year $10$ plus any additional cash flows associated with termination of the$$ project$)?$

d$.$What is the$$ project's NPV given a required rate of return of $12$ percent$?$