You wock for Apple. After toiling away on $10 million worth of peototypes, you have finally produced your answer to Google Glasses iGlasses (the name alome is genius), iGlasses will instantly transport the wearer into the world as Apple wants you to experience it: iTunes with the wink of an eye and apps that can be activated just by looking at them. You think that these will sell for 5 years until the next big thing comes along (or until the users are unable to interact with actual human beings). Revenues are peojocted to be $450 million per yea along with expenses of $350 million. You will neod to spend $60 million immediately on additional equipment that put into use in yex l and will be deprociated using the 5-year MACRS schodule. Additionally, you will use some fully-depreciated existing equipment that has a market value of S10 million. As the Glasses are an outoome of the R&D cente, Apple thinks it should charge $5 million of the annual costs of the center to the iGlasses product for 5 years. Finally, Apple's working capital levels will increase from their current level of S120 million to $140 million immediately. They will remain at the clevated level until year 5, when they will return to $120 million Apple's diso unt tate for this project is 15% and its tax rate is 35% Calculate the foc cash flows and determine the NPV of this proje Year MACRS Schedule Deprociation in Millions) NPV Y Without Project Change in NWC Net Working Capital Change in NWC Cash Flovw Year Taxable Income Net Income Add back Deprociation Opportunity Cost CF from Change NWC FCF 155,83