You work for Apple After toilling 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 instanty Vansport the wearer into the world as Apie warts him 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 five years une the next big thing comes along (or until users are unable to interact with actual human beings) Revenues are projected to be $442.8 milion per year along with expenses of $350.8 million You will need to spend $61.2 million immediately on additional equipment that will be depreciated using the 5-year MACRS schedule Additionally, you will use some fully depreciated existing equipment that has a market value of $9.9 million. As the Glasses are an outcome of the R&D center, Apple plans to change $5.3 million of the annual costs of the product for four years. Finally, Apple's working capital levels will increase from their current level of $1244 million to $138 million immediately. They will remain at the elevated level unt year 4, when they will return to $124 discount rate for this project is 15.8% and its tax rate is 21%. Calculate the free cash fows and determine the NPV of this project (Note Assume that the opportunity cost muid be after-tas and the equipment is put into use the C Apple's 783 --CIED 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 S Sales -Cost of Goods Sold 0.00 $ 0.00 0.00 $ 0.00 Gross Pro -Annual Charge 0.00 0.00 -Depreciation I Tax Incremental Earnings Depreciation 0.00 0.00 Incremental Working Capital 0.00 0.00 -Capital Investment 0.00 0.00 Opportunity Cost Incremental Free Cash Flow S The NPV of the project is $ion (Round to two decimal places) S S S $ S 0.00 $ 1 1 0.00 0.00 0.00 S $ 0.00 0.00 0.00 0.00 $ $ $ 0.00 000 $ s $ 0:00 0.00 0.00