Please ut should be Handwritten.

Note: Work must be completed by hand. No Excelodsheets will be accepted. 1. Mills Mining Corporation, a firm in the 40 percent marginal tax bracket with a 9 percent required rate of return or cost of capital, is considering a new project. The project involves the introduction of a new product. This project is expected to last five years and then be terminated. The project requires an initial capital investment of $385,000. Shipping and installation will cost an The capital investment will be depreciated using a 5-year MACRS schedule. The depreciation schedule is . If the project is undertaken, the company expects inventory and accounts receivable to increase by . To project demand for this new product, the company has spent $175,000 in focus groups and pre-market . The project is expected to generate sales of 20,000 units in each the first and fifth years, 30,000 units in year additional $25,000. as follows: 20%; 3296; 1996; 12%; 11%; and 6%. $42,500 and $15,000, respectively, and accounts payable to increase by $35,000. testing. 2, 50,000 units in year 3, and 40,000 units in year 4. The sales price per unit will be $14. .Variable production costs are expected to be $9.50 per unit. Additional operating costs (not induding depreciation) will equal $15,500 a year The firm expects to incur annual interest costs of $12,000. . The equipment is expected to have a salvage value (before-tax) of $18,000. a. b. c. d. What are the cash flows associated with the project for each year? What is the NPV of the project? What is the internal rate of return on the project? Should you accept the project? Why or why not