?(Related to Checkpoint? 12.1)???(Calculating project cash flowsand? NPV)??You are considering expanding your product line thatcurrently consists of skateboards to include? gas-poweredskateboards, and you feel you can sell 9 000 of these per year for10 years? (after which time this project is expected to shut downwith? solar-powered skateboards taking? over). The gas skateboardswould sell for ?$80 each with variable costs of ?$35 for each one?produced an annual fixed cost associated with production would be?$140 000. In? addition, there would be a ?$1 400 000 initialexpenditure associated with the purchase of new productionequipment. It is assumed that this initial expenditure will bedepreciated using the simplified? straight-line method down to zeroover 10 years. The project will also require a? one-time initialinvestment of $ 70 000 in net working capital associated with?inventory, and this working capital investment will be recoveredwhen the project is shut down. ? Finally, assume that the? firm'smarginal tax rate is 30 percent. a.??What is the initial cashoutlay associated with this? project?

b.??What are the annual net cash flows associated with thisproject for years 1 through 9??

c.??What is the terminal cash flow in year 10 ?(that is, what isthe free cash flow in year 10 plus any additional cash flowsassociated with the termination of the? project)?

d.??What is the? project's NPV given a required rate of returnof 12 percent??