Consider the following forecasts for a project $($in thousands$)$:

Year $1$ Year $2$ Year $3$ Year $4$ Year $5$

Revenues $55,00055,00055,00055,00055,000$

Costs of goods sold $27,00027,00027,00027,00027,000$

General, sales, and administrative expenses $5,0005,0005,0005,0005,000$

Depreciation $7,0007,0007,0007,0007,000$

EBIT $16,00016,00016,00016,00016,000$

Income tax $3,3603,3603,3603,3603,360$

The project requires:

upfront purchase of new equipment worth of $$37$ million $($capital expenditure$)$

$$15$ million investment in net working capital in year $0,$ which will be fully recivered in year $5$

$1.$ Calculate net income for years $1-5$

$2.$ Calculate free cash flow for year $0$

$3.$ Calculate free cash flow for years $1-5$

$4.$ If the interest rate is $8\%,$ calculate the net present value of this project.