We are examining a new project. We expect to sell 11,000 units per year at $63 net cash flow apiece for the next 10 years. In other words, the annual operating cash flow is projected to be $63 x 11,000= $693,000. The relevant discount rate is 11 percent, and the initial investment required is $3,650,000. a. What is the base-case NPV? b. After the first year, the project can be dismantled and sold for $1,550,000. If expected sales are revised based on the first year's performance, when would it make sense to abandon the investment? In other words, at what level of expected sales would it make sense to abandon the project? c. Explain how the $1550000 abandonment value can be viewed as the opportunity cost of keeping the project in one year. ANSWERS: a. base case NPV $431,237.78, b. abandon project is Q is less than $4443.37 because NPV of project is greater than NPV of future cash flows. c. The $1,550,000 is market value of project. If continue project, you forgoe the $1,550,000 that could be used for somehting else. PLEASE SHOW ME HOW TO FIND THESE ANSWERS AND SHOW YOUR WORK INCLUDING HOW YOU GET EACH VALUE. THANK YOU