(Estimated time allowance: 25 minutes) UpFour Corp. is planning to launch a new medium-price printer. This project will last 10 years. The projected sales for the new line of printers are 500 units a year. The sales price is $300 per printer and the variable costs are 70% of sales price. Fixed costs are $40,000 annually. The equipment required for producing the new line of printers costs $100,000 (today) and will be depreciated down to zero over 20 years using straight-line depreciation. The equipment is sold for $40,000 at the end of 10 years. Net working capital increases by $20,000 at the beginning of the project (year 0) and it is reduced back to its original level in the final year. The tax rate is 20 percent and the discounting rate for the project is 10%. Use the above information to answer the following 8 questions (filling in the blanks). When answering the questions, DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign and place it in front of first digit of your answer when your answer is a negative number. Round to the nearest 1000 in order to give room for rounding errors (do not enter decimals) for example if you obtain $1,201,605.83 then enter 1,200; if you obtain $80,205.79 then enter 80 1. What is the Earnings before Interests, taxes, and Depreciation (EBITDA) for the project in year 1? (round to nearest thousand and no decimals; do not enter $ sign) ________ 2. What is the annual operating cash flow (OCF) for the project in year 1? (round to nearest thousand and no decimals; do not enter $ sign) ________ 3. What is the book value for the equipment at the end of year 10? (round to nearest thousand and no decimals; do not enter $ sign) ________ 4. What is the after-tax cash flow of the equipment at disposal (salvage)? (round to nearest thousand and no decimals; do not enter $ sign) ________ 5. What is the incremental cash flow at the end of year 10? (round to nearest thousand and no decimals; do not enter $ sign) ________ 6. What is the incremental cash flow of the project (initial outlay or IO) at year 0? (round to nearest thousand and no decimals; do not enter $ sign) ________ 7. What is the Net Present Value (NPV) for this project? ** Please round to nearest million in order to accommodate for rounding errors. Example: if you obtain $11,245,678 then enter 11 (do not enter $ sign) ________ 8. The project should be rejected or accepted? In your response only type either accepted or rejected ________ Please show formulas and work.