Please do the question correctly otherwise I downvote

Problem: A large auto company has just completed the research and development (R&D) on a new product, the Electrobicycle. The Electrobicycle is an electronic, climate-controlled bicycle with zero emissions. The R&D efforts focused on developing the capability to utilize electricity to power bicycles. Ultimately, the auto company expects Electrobicycles to be popular for most urban citizens due to convenience and low cost. The R&D, which cost $3 million, is complete and paid for. The plant and equipment to mass produce the Electrobicycles will cost $2 million. This plant and equipment will be depreciated over 5 years using the straight-line method to zero book value ($400,000 per year). A working capital investment of $1 million will be needed at the beginning of the project. A working capital investment of $200,000 per year will be needed thereafter. At the end of 5 years, the auto company believes there will be no more sales opportunities for Electrobicycles and will cease all production. Thus, at the end of the project, all working capital investments (the $1 million initial investment and the $200,000 per year) will be recovered at full value. The plant and equipment will be scrapped for a salvage value of $300,000 (after tax). The company expects moderate sales in years 1 and 2, and then significant growth in each year thereafter as consumers adopt the Electrobicycles. Revenues and earnings will cease at the end of Year 5. The revenues, after-tax earnings, and cash flow for the 5-year life of the project are shown in this table. Table 1 Projected Electrobicycle Financial Projection Numbers in $000's Today Year 1 Year 2 Year 5 Revenues After-tax earnings $1,000 ($500) $1,500 $100 Year 3 $3,000 $300 Year 4 $6,000 $600 $12,000 $1,200 Project Cash Flow $100 $400 ($500) $400 $300 $600 $400 $1,200 $400 $400 ($2,000) $0 $0 $0 $0 $0 After-tax earnings Plus: Depreciation Less: Cost of plant, equipment Less: Working capital Plus: Recovery of working capital Plus: Salvage value Annual project cash flow ($1,000) ($200) ($200) ($200) ($200) ($200) n/a n/a n/a n/a $2,000 n/a n/a n/a n/a $600 ($300) $300 $500 $800 $4,000 Note: n/a = not applicable Calculate: Determine the NPV for the Electrobicycle project. Use the annual project cash flow from the table above. For the required rate of return, use the percent value from your birthday date. For example, if your birthday falls on the 16th of the month, the required rate of return would be 16%. For guidance, review Section 7.1 of the textbook, NPV Example: The Pizza Scooter Delivery Project Revisited. Period 1 2 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 1% 5% 8% 10% 11% 12 13% 15: Pero 0.9901 03804 0.9709 09615 0.9524 09434 09346 0.9259 0.9174 0.9091 0.9009 0 8929 0.8850 0.8772 0.8696 1 0.9806 09612 0.3426 0.9246 0.9076 0.8900 08/34 08573 0.8417 0.8254 0.8116 0.1972 0.7831 0.7695 0.7561 2. 0.9706 0.9423 0.9151 0.8890 0.8633 0.8396 08163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.5750 0.6575 0.961009238 0.8585 08548 08227 0.7921 0.7529 0.7350 0.7084 0.6830 0.6587 0.6355 0.5133 0.5921 0.5718 4 0.9515 0.0328 0.96.25 08219 0.7835 0.7473 0.713006806 0.6499 0.6209 0.3935 0 5674 0.5428 0.5194 0.4972 5 0.0161 00176 08375 0.7963 0.7462 0.7050 0.5863 0.6302 0.5963 0.5645 0 5346 0.5066 0.4863 0.4556 0.4323 5 0.9627 0.0096 0.8131 0.7599 0.7107 0.5651 0.6227 05835 0.5470 0.3132 0.4817 0.4523 0.4251 0.3996 0.3759 7 0.9235 0.0053 0.7894 0.7307 0.6768 06274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3259 0.9143 0.7477 0.7654 0.7025 0.6146 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3506 0.3329 0 3075 0.2843 0.9053 0.8401 0.7441 0.5756 0.6139 05584 05083 04632 0.4224 0.3858 0.3522 0.3220 0.2946 0.2897 0.2472 10 0.8963 09004 0.7224 0.6496 0.5947 0.5258 0.4751 0.4289 0.3875 0.3505 0.3173 0.2875 0.2507 0.2386 02149 11 0.8874 0.7885 0.7014 06246 0 5568 04970 0.4440 0.3971 03556 03186 0.2858 0.2567 0.2307 0.2076 0.1969 12 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3252 0.2897 0.2575 0 2292 0.2042 0.1821 0.1625 13 0.8700 0.7579 0.8611 0.5778 0.5051 04423 0.3878 03405 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 14 0.2513 0.7430 0.5419 0.5553 0.4810 0.4173 0.3624 0.3 152 02745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 15 0.8528 0.7284 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.25 19 0.2176 0.1883 0.1631 0.1415 0.1229 0.1089 16 08144 0.7142 0.6050 05134 0.4363 03714 0.3166 0.2705 02311 0.1978 0.1696 0.1456 0.1252 0.1078 0.09.29 17 0.8350 0.7002 0.5874 0.4936 0.4155 03503 0.2959 0.25020 2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0838 18 0.8277 06864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1535 0.1377 0.1161 0.0981 0.0829 0.0703 19 0.8195 0.67 30 0.5537 0.4564 0 3769 0.3118 0.2584 0.2145 0.1784 0.1485 0.1240 0.1037 0.8868 0.0728 0.0611 20 0.8114 0.6598 0.5375 0.4388 0.3589 0.2942 0.2415 0.1987 0.1637 0.1351 0.1117 0.0926 0.0768 0.0538 0.0531 21 0.8034 0.5468 0.5219 0.4220 0.3418 0.2775 0.2257 0.1839 0.1502 0.1228 0.1007 0.0826 0.0680 0.0580 0.0462 22 0.7954 0.6342 0.5067 0.4057 0.3256 0.2518 0.2109 0.1703 0.1378 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 23 0.7876 0.62 17 0.4919 0.3901 0.3101 02470 0.1971 0.1577 0.1264 0.1015 0.0817 0.0559 0.0532 0.0431 0.0349 24 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.1842 0.1450 0.1160 0.0923 0.0736 0.05 0.0471 0.0378 0.0304 25 0.7720 0.59 76 0.4637 03607 02812 02199 0.1722 0.1352 0.1064 0.0839 0.0663 0.0525 0.0417 0.0331 0.0264 26 0.7644 0.5859 0.4502 0.3458 0.2678 0.2074 0.1609 0.1252 0.0976 0.0763 0.0597 0.0469 0.0369 0.0291 0.0230 27 0.7668 0.5744 0.4371 0.3335 0.2551 0.1956 0.1504 0.1159 0.0895 0.0633 0.053 0.0419 0.03.25 0.0255 0.0200 28 0.7493 0.5631 0.4243 0.3 207 0.2429 0.1846 0.1406 0.1073 0.0822 0.0530 0.0485 0.0374 0.0299 0.0224 0.0174 29 0.7419 0.5521 0.4120 0.3083 0 2314 0.1741 0.1314 0.0994 0.0754 0.0573 0.0437 0.0334 0.0256 0.0196 0.0 151 30 Calculate the NPV of the Electrobicycle project. Be sure to show your NPV calculations. Explain, in your own words, why working capital investments are subtracted each year in the cast Explain, in your own words, the meaning of the required rate of return for the project. Assume the auto company has a required rate of return of 15%. Based on the required rate of ret birthday date), is the Electrobicycle project more or less risky than the auto company? Explain yo Based on your concluded NPV, should the company invest in this project to build Electrobicycles Today Year 2 Year 3 Year 4 Year 5 Year 1 $1,000 Revenues After-tax earnings $1,500 $100 $3,000 $300 $6,000 $600 $12,000 $1,200 ($500) Project Cash Flow $100 $600 $1,200 ($500) $400 $300 $400 $400 $400 $400 ($2,000) $0 $0 $0 $0 $0 After-tax earnings Plus: Depreciation Less: Cost of plant, equipment Less: Working capital Plus: Recovery of working Capital Plus: Salvage value Annual project cash flow ($1,000) ($200) ($200) ($200) ($200) ($200) n/a n/a n/a n/a $2,000 n/a n/a n/a n/a $600 $4,000 ($300) $300 $500 $800