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Score: 0 of 10 pts 8of 8 (3 complete HW Score: 37.5%, 30 of 80 pts P12-14 (similar to) Question Help Related to Checkpoint 12.1) (Calculating project cash flows and NPV) You are considering expanding your product line that currently consists of skateboards to include gas powered skateboards, and you feel you can sel 9,000 of these per year for 10 years after which time this project is expected to shut down with solar powered skateboards taking over). The gas skateboards would sell for $70 each wth variable costs of $30 for each one produced, and and costs associated with production would be $150,000 In addition, there would be a $1,400,000 expenditure associated with the purchase of new production equipment is med holisinilexpenditure wil be depreciated using the simplified-ine method down to zero over 10 years. The project will also require a one-time investment of 500,000 in networking capital associated with inventory, and is working capital investment will be recovered when the project is shut down. Finally, assume that the firm's marginal tax rate is 32 percent a. What is the initial cash outlay associated with this project? b. What are the annual net cash flows associated with this project for years through 97 What is the terminal cash flow in year 10 (that is what is the free cash flow in year 10 plus any additional cash flows associated with termination of the project? d. What is the project's NPV given a required rate of rebum of 9 percent? Score: 0 of 10 pts 8 of 8 computer HW Score: 37.5%, 30 of 80 pts P12-14 (similar to) Question Help Related to Checkpoint 12.1) (Calculating project cash flows and NPV) You are considering expanding your product line that currently consists of skateboards to include as powered seboards, and you feel you can sell 9.000 of these per year for 10 years (Wher which in the project is expected to shut down with solar powered boars taking over the passwords would sell for $70 each wth rate of $30 for each one produced, and annual fed conte associated with production would be $150,000. In addition, there would be a $1,400,000 wapenditurested with the purchase of new production equipment is med talle penditure will be depreciated using the simplified straight-line method down to 200 over 10 years. The project will require a one-time investment of $60.000 in not working capital associated with inventory, and is working capital vent will be recovered when the project is shut down. Finally, assume that the firm's marginal tax rate is 32 percent a. What is the initial cash outlay associated with this project? b. annual cash for What is the laminat cash flow in year 10 (matis, what is the free cash flow in year 10 plus any additional cash flow associated with termination of the project? d. What is the project's NPV gvan a required rate of retum of 9 percent? Save Score: 0 of 10 pts 883 com HW Score: 37.5%, 30 of 0 pts P12-14 (similar to) Question Help 0 (Related to Checkpoint 12.1) (Calculating project cash flows and NPV) You are considering expanding your product in that currently of statoards to include a powered stateboards, and you feel you can set of these per year for 10 years after which time the project is expected to shut down with a powered boards foking over. The gas stards would sell for seach with the cost of $30 for each one redund rufados Associated with production would be $150.000. In addition, there would be a $1.400.000 expenditure sed with the purchase free printa mered at antal perdrewe be depredning med to the method down to pero over 10 years. The project will one metal vento 00.000 inwoond is working capital et le revered where project is shutdown Pinay, assume that the w's marginal 32 percent .. What is the cash outlay associated with his b. What are the nechows associated with this project for years through .. What is the mind canh town year 10 fitalwhat is the free cath tow in your top any storal cantowaneocito westeration of the project d. What is the projects NPV given a required rate of rum of percent