operation and supply chain management

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 that will be released on the market when development is complete. This will allow the user to place ultra high definition is concerned about the development cost and time. It is also worried about market estimates of the sales of the new ). The cost estimates and forecast are given in the following table: 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 Year Year Year 2 5 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