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6. Using the information below as your own company financials what are the yearly cash flows and NPV? a manufacturer of is currently developing a new model development is complete. This will allow the user to place ultra high definition development cost and time. It is also worried about market estimates of the sales of the new are given in the following table: that will be released on the market when is concerned about the 1. The cost estimates and forecast Development Cost $2,000,000 Development Time 2 years Ramp-up Cost $750,000 Marketing and Support Cost $500,000/year Unit Production Cost $75 Unit Price $135 Sales and Production Volume Year 3 40,000 Year 4 50,000 Year 5 40,000 Use the given data to develop a base-case analysis. The project schedule is shown as follows with timings of the cash flows: Page 61 Project Schedule Year Year 1 Year 2 Year 4 Year 5 3 Development Ramp-up Marketing and Support Production Volume Several questions need to be answered for about this project: a. What are the yearly cash flows and their present value (discounted at 12 percent) of this project? What is the net present value