PROBLEM 2 Aria Acoustics, Inc., (AAI) pro,ects unit sales for a new seven-octave voice emulation implant as follows: Production of the implants will require $2,350,000 in net working captal to start and additional net working capital investments each year equal to 25 percent of the projected sales increase for the following year. Total fixed costs are $1,490,000 per year, variable production costs are $239 per unit. and the units are priced at $359 each. The equipment needed to begin production has an installed cost of $30,000,000. Bectioso the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualfies as seven-year MACRS (MACRS Table) property. In five years, this equipment can be sold for about 20 percent of its acquistion cost. AAl is in the 40 percent marginal tax bracket and has a required retum on al its projects of 16 percent. What are operating cash flows, change in net working capital, capital spending, and total cash flow for each year of the project? (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter " 0 " wherever required. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places., e.g., 32.16.) Net present value What is the IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of retum %