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As a financial analyst, you must evaluate a proposed project to produce printer cartridges. The...

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As a financial analyst, you must evaluate a proposed project to produce printer cartridges. The equipment would cost $55,000, plus $10,000 for installation. Annual sales would be 4,000 units at a price of $50 per cartridge, and the project's life would be 3 years. Curtent assets would increase by $5,000 and payables by $3,000. At the end of 3 years, the equipment could be sold for $10,000. Depreciation would be based on the MAcrs 3 -year clas5; so the applicable rates would be 33%,45%,15%, and 7%. Variable costs would be 70% of sales reveniues. fured costs excludine depreciation would be $30,000 per year, the marginal tax rate is 40%, and the corporate WACC is 11%. 1. What is the required investment, that is, the Year 0 project cash flow? 2. What are the project's annual net cash flows? 3. What is the terminal year project cash flow? You did ascenario analysis to better understand the project's NPV: The firm's project CVs generally range from 1.0 to 1.5. A 3% risk premium is added to the WACC it the initial CV excecds 1.5 , and the WACC is reduced by 0.5 \& if the CV is 0.75 or less. Then a revised NPV is calculated. What WACC should be used for this profect

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