​(Calculating NPV​) Doublemeat Palace is considering a new plantfor a temporary​ customer, and its finance department hasdetermined the following characteristics. The company owns much ofthe plant and equipment to be used for the product. This equipmentwas originally purchased for​ $90,000; however, if the project isnot​ undertaken, this equipment will be sold for $ 30,000 after​taxes; in​ addition, if the project is not​ accepted, the plantused for the project could be sold for $ 85,000 after taxes-theplant originally cost​ $40,000. The rest of the equipment will needto be purchased at a cost of $ 130,000. This new equipment will bedepreciated by the straight line method over the​ project's 3​-year​life, after which it will have zero salvage value. No change innet operating working capital would be​ required, and managementexpects revenues resulting from this new project to be $ 222,000per year for 3 ​years, while increased operating​ expenses,excluding​ depreciation, are expected to be $ 86,000 per year overthe​ project's 3​-year life. The average tax rate is 25 percent andthe marginal tax rate is 35 percent. The required rate of returnfor this project is 13 percent. What is the​ project's NPV​?

a. What is the initial outlay associated with this​ project?

b. What are the annual​ after-tax cash flows associated withthis project for years 1 and 2​ (note that the cash flows for years1 and 2 are​ equal)?

c. What is the terminal cash flow in year 3​ (what is theannual​ after-tax cash flow in year 3 plus any additional cashflows associated with the termination of the​ project)?

d. What is the ​project's NPV given a required rate of return of13 ​percent?