?(Calculating free cash flows?) At? present, SolartechSkateboards is considering expanding its product line to include?gas-powered skateboards;? however, it is questionable how well theywill be received by skateboarders. Although you feel there is a 50percent chance you will sell 12 comma 000 of these per year for 10years? (after which time this project is expected to shut downbecause? solar-powered skateboards will become more? popular), youalso recognize that there is a 25 percent chance that you will onlysell 4 comma 000 and also a 25 percent chance you will sell 17comma 000. The gas skateboards would sell for $ 120 each and have avariable cost of ?$30 each. Regardless of how many you? sell, theannual fixed costs associated with production would be ?$150 comma000. In? addition, there would be an initial expenditure of ?$800comma 000 associated with the purchase of new production equipment.It is assumed that this initial expenditure will be depreciatedusing the simplified? straight-line method down to zero over 10years. Because of the number of stores that will need? inventory,the working capital requirements are the same regardless of thelevel of sales. This project will require a? one-time initialinvestment of $ 40 comma 000 in net working? capital, and that?working-capital investment will be recovered when the project isshut down.? Finally, assume that the? firm's marginal tax rate is35 percent. a. What is the initial outlay associated with the?project? b. What are the annual free cash flows associated with theproject for years 1 through 9 under each sales? forecast? What arethe expected annual free cash flows for years 1 through? 9? c. Whatis the terminal cash flow in year 10? (that is, what is the freecash flow in year 10 plus any additional cash flows associated withthe termination of the? project)? d. Using the expected free cash?flows, what is the? project's NPV given a required rate of returnof 12 ?percent? What would the? project's NPV be if 12 comma 000skateboards were? sold?