Your event lighting company is thinking about investing in a bank of portable lights for sporting events. Your accounting department just brought you the following pro-forma accounting projections for a given bank of lights. These are in the Excel Answer File. Your job is to analyze this project from a financial perspective.

Download Excel answer file with the project information in it. Use it to answer the following three questions showing your work and then upload your file to answer this question.

Part a: If the tax rate is 40%, what is the incremental, unlevered net income of the project appropriate for project analysis in each year?

Part b: What is the incremental free cash flow of the project in each year?

Part c: What is the PI of the project if the required return is 8%?