Capital Budgeting Problem Explained (100 points total) Garcia and Matinez manufacture widgets and currently have $3 million in taxable income. The company is considering an expansion, and they've asked you to evaluate the project. The expansion requires the firm to produce 80,000 widgets a year for 6 years, and the company estimates they can sell them for $28 per widget. Garcia and Martinez estimate they will need an additional $4,000,000 worth of machinery. The machinery costs $200,000 a year to operate and maintain. The machinery's depreciable life is 8 -years, and the company expects to salvage the machinery for $1,000,000 at the eth of Year 6 . If the project is accepted, the company will immediately increase inventory by $500,000 and maintan the new inventory level over the project's life. Similarly, the company will immediately add $75,000 to their cash balance at stat-ip and maintain that higher cash balance over the project's life. The investments in cash and imventory will be recovered when the project is completed. The marginal cost of producing a widget is $6.00 and the cost of eapital is 12%. Calculate the project's NPV by linking to the named variables in Colimn K