Question: Please show all work. This was submitted already and the answers were wrong. Capital spending year 5? Thanks Aguilera Acoustics, Inc, (AAI) projects unit sales
Please show all work. This was submitted already and the answers were wrong. Capital spending year 5? Thanks

Aguilera Acoustics, Inc, (AAI) projects unit sales for a new seven-octave voice emulation implant as follows: Unit Sales 110,500 129,500 117,500 100,500 86,500 2 4 5 Production of the implants will require $1,750,000 in net working capital to start and additional net working capital investments each year equal to 20 percent of the projected sales increase for the following year Total fixed costs are $1,400,000 per year, variable production costs are $230 per unit, and the units are priced at $350 each. The equipment needed to begin production has an installed cost of $25,500,000 Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS (MACRS Table) property. In five years, this equipment can be sold for about 10 percent of its acquisition cost. AAI is in the 34 percent marginal tax bracket and has a required return on all its projects of 17 percent. Required What are operating cash flows, change in net working capital, capital spending, and total cash flow for each year of the project? (Do not round intermediate calculations. Enter a minus sign to indicate a cash outflow. Enter a zero where required. Round your answer to the nearest whole number (e.g., 32) Year 2 OCF Change in NWC Capital spending Total cash flow What is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Net present value What is the IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Internal rate of return
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