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Score: 0 of 4 pts 5 of 5 (0 complete) HW Score: 0%, 0 of 16 pts Question Help P12-22 (similar to) {Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 33 percent marginal tax bracket with a required rate of return or discount rate of 11 percent, is considering a new project. This project involves the introduction of a new product The project is expected to last 5 years and then because this is somewhat of a fad product. It will be terminated Given the following information, determine the free cash flows associated with the project, the project's net present value, the profitability Index, and the internal rate of return. Apply the appropriate decision criteria a. Determine the free cash flows associated with the project The FCF in year Olss (Round to the nearest dollar) Data Table Cost of new plant and equipment: $15,000,000 Shipping and installation costs: $180,000 Unit sales: Year 2 3 4 5 Units Sold 65,000 110,000 110,000 75,000 65,000 Sales price per unit: Variable cost per unit: Annual fixed costs: Working capital requirements: $310 unit in years 1 through 4, 5260unit in year 5 $160/unit $800,000 There will be an initial working capital requirement of $220,000 to get production started. For each year, the total investment in net working capital will be equal to 12 percent of the dollar value of sales for that year Thus, the investment in working capital will increase during years 1 through 3, then decrease in year 4 Finally, all working capital is liquidated at the terminatio of the project at the end of year 5. Use the simplified straight line method over 5 years. It assumed that the plant and equipment will have no salvage value after 5 years The depreciation method: Enter your answer in the answer box and then click Check And Print Done 9 parts remaining

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