Project cash flow and NPV.??The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds? (1957 replicas)....

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Project cash flow and NPV.??The managers of Classic AutosIncorporated plan to manufacture classic Thunderbirds? (1957replicas). The necessary foundry equipment will cost a total of?$4,000,000 and will be depreciated using a? five-year MACRS? life,LOADING... . The sales manager has an estimate for the sale of theclassic Thunderbirds. The annual sales volume will be as? follows:Year? one:??260 Year? four:??370 Year? two:??270 Year? five:??330Year? three:??330 If the sales price is ?$28,000 per? car, variablecosts are ?$20,000 per? car, and fixed costs are ?$1,100,000?annually, what is the annual operating cash flow if the tax rateis 30?%? The equipment is sold for salvage for ?$500,000 at the endof year five. Net working capital increases by ?$500,000 at thebeginning of the project? (year 0) and is reduced back to itsoriginal level in the final year. Find the internal rate of returnfor the project using the incremental cash flows.

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Project cash flow and NPV.??The managers of Classic AutosIncorporated plan to manufacture classic Thunderbirds? (1957replicas). The necessary foundry equipment will cost a total of?$4,000,000 and will be depreciated using a? five-year MACRS? life,LOADING... . The sales manager has an estimate for the sale of theclassic Thunderbirds. The annual sales volume will be as? follows:Year? one:??260 Year? four:??370 Year? two:??270 Year? five:??330Year? three:??330 If the sales price is ?$28,000 per? car, variablecosts are ?$20,000 per? car, and fixed costs are ?$1,100,000?annually, what is the annual operating cash flow if the tax rateis 30?%? The equipment is sold for salvage for ?$500,000 at the endof year five. Net working capital increases by ?$500,000 at thebeginning of the project? (year 0) and is reduced back to itsoriginal level in the final year. Find the internal rate of returnfor the project using the incremental cash flows.