1. What is the initial outlay associated with this project?
2. What is the annual free cash flow associated with this project in year 1?
3. What is the annual free cash flow associated with this project in year 2?
4. What is the annual free cash flow associated with this project in year 3?
5. What is the annual free cash flow associated with this project in year 4?
6. What is the terminal cash flow in year 5 (that is, what is the free cash flow in year 5 plus, any additional cash flows associated with the termination of the project)?
7. What is the project's NPV given a required rate of return of 13 percent?
8. What is the project's PI given a required rate of return of 13 percent?
9. What is the project's IRR?

net present value, the profitability index, and the internal rate of return. Apply the appropriate decision criteria. Cost of new plant and equipment Shipping and installation costs Unit sales $15,000,000 $600,000 \begin{tabular}{cc} YEAR & UNIT S SOLD \\ \hline 1 & 60,000 \\ 2 & 125,000 \\ 3 & 125,000 \\ 4 & 70,000 \\ 5 & 60,000 \end{tabular} $380/ unit in years 1 through 4,$330/ unit in year 5 \$200/unit $900,000 per year in years 1-5 There will be an initial working-capital requirement of $220,000 just to get production started. For each year, the total investment in net working capital will be equal to 20 percent of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 and 2 , then decrease in year 4. Finally, all working capital is liquidated at the termination of the project at the end of year 5 . Use the simplified straight-line method over 5 years. Assume that the plant and equipment will have no salvage value after 5 years. (Click on the icon located on the fop-right comer of the data table above in order to copy its contents into a spreadsheet.)