You are considering expanding your product line that currentlyconsists of skateboards to include? gas-powered skateboards, andyou feel you can sell 8,000 of these per year for 10 years? (afterwhich time this project is expected to shut down with?solar-poweredskateboards taking? over). The gas skateboards would sell for $70each with variable costs of $35 for each one? produced, and annualfixed costs associated with production would be ?$190,000. In?addition, there would be a $1,200,000 initial expenditureassociated with the purchase of new production equipment. It isassumed that this initial expenditure will be depreciated using thesimplified? straight-line method down to zero over 10 years. Theproject will also require a?one-time initial investment of $60,000in net working capital associated with? inventory, and this workingcapital investment will be recovered when the project is shut down.? Finally, assume that the? firm's marginal tax rate is 33percent.

a.??What is the initial cash outlay 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 termination of the? project)?

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