$($Related to Checkpoint $12\mathrm{.}1)($Comprehensive problem$-$calculating project cash flows, NPV$,$ PI$,$ and IRR$)$ Traid Winds Corporation, a firm in the $34$ percent marginal tax bracket with a required rate of return or discount rate of $15$ percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last $5$ years and then, because this is somewhat of a fad product, it will be terminated. Given the following information, $,$ determine the free cash flows associated with the project, the project's net present value, the profitability index, and the internal rate of return. Apply the appropriate decision criteria.

a$.$ Determine the free cash flows associated with the project.

The FCF in year $0$ is $ $q,.($Round to the nearest dollar.$)$

The FCF in year $1$ is $ $($Round to the nearest dollar.$)$

The FCF in year $2$ is $ $q,($Round to the nearest dollar.$)$

The FCF in year $3$ is $ $q,($Round to the nearest dollar.$)$

The FCF in year $4$ is $ $($Round to the nearest dollar.$)$

The FCF in year $5$ is $ $($Round to the nearest dollar.$)$

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$($Related to Checkpoint $12\mathrm{.}1)($Comprehensive problem$-$calculating project cash flows, NPV$,$ PI$,$ and IRR$)$ Traid Winds Corporation, a firm in the $34$ percent marginal tax bracket with a required rate of return or discount rate of $15$ percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last $5$ years and then, because this is somewhat of a fad product, it will be terminated. Given the following information, $,$ determine the free cash flows associated with the project, the project's net present value, the profitability index, and the internal rate of return. Apply the appropriate decision criteria.

b$.$ The net present value $($NPV$)$ of the project is $

$($Round to the nearest dollar.$)$

c$.$ The profitability index $(\frac{?}{PI})$ of the project is $($Round to three decimal places.$)$

d$.$ The internal rate of return $($IRR$)$ of the project is

$\%.($Round to two decimal places.$)$

e$.$ Should Traid accept this new project? $($Select the best choice below.$)$

A$.$ No$.$ The project should be rejected because its NPV is negative, the PI is less than one, and the IRR is less than the required rate of return, $15\%.$

B$.$ Yes. The project should be accepted because its NPV is positive, the PI is greater than one, and the IRR is greater than the required rate of return, $15\%.$