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A company will sell Thingamajigs to consumers at a price of $100 per unit. The...

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A company will sell Thingamajigs to consumers at a price of $100 per unit. The variable cost to produce Thingamajigs is $42 per unit. The company expects to sell 12,000 Thingamajigs to consumers each year. The fixed costs incurred each year will be $120,000. There is an initial investment to produce the goods of $3,500,000 which will be depreciated straight line over the 8 year life of the investment to a salvage value of $0. The opportunity cost of capital is 9% and the tax rate is 27%. What is operating cash flow each year? 538605 Correct response: 538,605+1 Click "Verify" to proceed to the next part of the question. Using the an annual operating cash flow of $538,605, what is the net present value of this investment? -518918. 7 0 Correct response: -518,918.75+10 Should the company accept or reject this project? Accept Reject Correct response: Reject Click "Verify" to proceed to the next part of the question. What is the net present value of the project if inventories must be increased at the start of the project (year 0) by $400,000 and will be recovered at the end (year 8), given that the NPV of the project ignoring changes in net working capital is $-518,918.75? Number Click "Verify" to proceed

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