​(Calculating free cash flows​) At​ present, Solartech Skateboards is considering expanding its product line to include​

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​(Calculating free cash flows​) At​ present, Solartech
Skateboards is considering expanding its product line to include​
gas-powered skateboards;​ however, it is questionable how well they
will be received by skateboarders. Although you feel there is a 40
percent chance you will sell 12,000 of these per year for 10 years​
(after which time this project is expected to shut down because​
solar-powered skateboards will become more​ popular), you also
recognize that there is a 30 percent chance that you will only sell
2,000 and also a 30 percent chance you will sell 17,000. The gas
skateboards would sell for $120 each and have a variable cost of
​$50 each. Regardless of how many you​ sell, the annual fixed costs
associated with production would be ​$160,000. In​ addition, there
would be an initial expenditure of ​$800,000 associated with the
purchase of new production equipment which will be depreciated
using the bonus depreciation method in year 1. Because of the
number of stores that will need​ inventory, the working capital
requirements are the same regardless of the level of sales. This
project will require a​ one-time initial investment of $60,000 in
net working​ capital, and​ working-capital investment will be
recovered when the project is shut down.​ Finally, assume that the​
firm's marginal tax rate is 22 percent.
a. What is the initial outlay associated with the​ project?
b. What are the annual free cash flows associated with the
project for years​ 1, and 2 through 9 under each sales​ forecast?
What are the expected annual free cash flows for year​ 1, and years
2 through​ 9?
c. What is the terminal cash flow in year 10​ (that is, what is
the free cash flow in year 10 plus any additional cash flows
associated with the termination of the​ project)?
d. Using the expected free cash​ flows, what is the​ project's
NPV given a required rate of return of ​percent? What would the​
project's NPV be if 12,000 skateboards were​ sold?