You work for Apple. After toiling away on $ 10.1million worth ofprototypes, you have finally produced your answer to GoogleGlasses: iGlasses(the name alone isgenius). iGlasses will instantly transport the wearer into the world as Apple wants him to experienceit: 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 four years until the next big thing comes along(or until users are unable to interact with actual humanbeings). Revenues are projected to be $ 449.6million per year along with expenses of $ 358.4million. You will need to spend $ 59.4million immediately on additional equipment that will be depreciated using the5-year MACRS schedule.Additionally, you will use some fully depreciated existing equipment that has a market value of $ 9.3$9.3

million. As the iGlasses are an outcome of theR&D center, Apple plans to charge $ 4.7million of the annual costs of the center to the iGlasses product for four years.Finally, Apple's working capital levels will increase from their current level of $ 120.7$120.7

million to $ 136million immediately. They will remain at the elevated level until year4, when they will return to $ 120.7million.Apple's discount rate for this project is 15.7 %and its tax rate is 35 %Calculate the free cash flows and determine the NPV of this project.(*) The opportunity cost must beafter-tax.