You work for Apple After toiling away on $10.1 million worth of prototypes, you have finally produced your answer to Google Glasses Glasses (the name alone is genius) Glasses will instantly transport the wearer into the world as Apple wants him to experience 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 five years until the next big thing comes along for until users are unable to interact with actual human beings) Revenues are projected to be $457 3 million per year along with expenses of $358 million You will need to spend $60.4 milion immediately on additional equipment that will be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully deprecated existing equipment that has a market value of $10.7 million As the Glasses are an outcome of the R&D center Apple plans to chargo $5 milion of the annual costs of the center to the Glasses product for four years. Finally, Apple's working capital levels will increase from their current level of $124 1 milion to $135.8 million immediately. They will remain at the elevated lovel until year 4 when they will return to $124.1 million Apple's discount rate for this project is 14.8% and its tax rate is 35% Calculate the free cash flows and determine the NPV of this project(") The opportunity cost must be after-tax. Note: Assume that the equipment is put into use in year 1 Calculate the free cash flows below: (Round to two decimal places) (5 million) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Sales $ S S S $ S 0.00 $ 0.00 $ $ $ S 5 S $ $ 0.00 $ $ $ s - Cost of Goods Sold Gross Profit - Annual Charge - Depreciation EBIT $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ $ $ S S $ S $ $ $ $ $ $ $ S 5 $ $ S 5 G A $ $ S 3 5 on Tax Incremental Earnings + Depreciation Incremental Working Capital - Capital Investment Opportunity Cost(") Incremental Free Cash Flow $ S 0.00 $ $ $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ S 0.00 $ 0.00 $ 0.00 $ 0.00 $ 10.00 0.00 $ 0.00 $ $ $ 0.00 $ 0.00 $ 0.00 $ $ $ $ S The NPV of the project is million (Round to two decimal places.) Enter any number in the edit fields and then continue to the next