Section II: Short answer questions Q2> Needle and Thread Inc, is considering expanding one of its production facilities to build a new line of sewing kits. The project would require a $850,000 capital investment and will be equally depreciated (straight-line) over its 4 year life. They believe they can salvage $250,000 for the equipment at the end of the project. Incremental sales are expected to be $1,000,000 annually for the 4 year period with cash operating expenses of 43% of sales. The company would also have to commit initial working capital to the project of $700,000. The company is subject to a marginal tax rate of 30% and investors require a 10% return on projects with a similar risk. A. What is the initial cash outlay associated with this project (FCF in Year 0) ? (1 point) B. What are the annual net cash flows associated with this project for Years 1 through 3 (FCF in Year 13 )? (1.3 point) C. What is the terminal cash flow in year 4 (FCF in Year 4 )? (1 point) D. Determine the project's NPV. (1 point)