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At the beginning, it is assumed that the project will generate $665,000 annually for four years. What if the project fails to do so? Now, things are changed, and the project is not expected to generate $665,000 annually. Based on your own research and analysis, the project is expected to provide the following cash flows stream. You are required to find out the distribution of free cash flows generated by the project as you did in P2-Q1. Use the following information to complete P2- Q2. (Note: Any unpaid interest obligation must be fully paid in the next period with the interest on the amount of unpaid interest.)

o Year 1: $300,000 o Year 2: $180,000 o Year 3: $1,000,000 o Year 4: $1,180,000

Please use the following information to complete the Part2 Q3:

0. Please use the following information to complete the Part2 Q2:

   • Now, you are asked not to worry about the distribution of free cash flows.

   • Find NPV using the annual cash flow information provided in Part2 Q2:

     o Year 1: $300,000 o Year 2: $180,000 o Year 3: $1,000,000 o Year 4: $1,180,000

P2-Q2:
Year	0	1	2	3	4
Principal
FCF		$300,000.00	$180,000.00	$1,000,000.00	$1,180,000.00
Interest obligation
Interest payment (actual)
FCF after interest payment
Payment to principal
Excess wealth
Unpaid interest
Present value (at the beginning of year 1 which is the same as the year 0) of Excess wealth in Year 4:
P2-Q3:
Year	0	1	2	3	4
Initial Investment	$2,150,000.00
FCF		$300,000.00	$180,000.00	$1,000,000.00	$1,180,000.00
Present value
Net Present Value

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