Question: (Related to Checkpoint 12.1) (Comprehensive problem - calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 36 percent marginal

(Related to Checkpoint 12.1) (Comprehensive problem - calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 36 percent marginal tax bracket with a required rate of retum or discount rate of 12 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 $ (Round to the nearest dollar.) Data table Cost of new plant and equipment: $15,000,000 Shipping and installation costs: $210,000 Unit sales
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