Given the data in the following table, the initial net cash flow of the project ( i.e CFO) is $ NOTE: The table below applies to questions 32 to 36 (it is included on each of these questions ). ASCInc. is considering the production of a new line of soft drinks at its SpringfieldIL plantThe CFO of ASC, Inc. is provided with the following information on the new project The expansion will require the immediate purchase of new machinery for $ 29,000,000 The firm has spent $1,000,000 to train workers to use the new machinery. The incremental sales from this project are expected to be $19,500,000 per year. The incremental operating expenses (excluding depreciation ) are expected to equal $ 11,300,000 per year . The company uses straight-line depreciation. The project has an economic life of 10 years. The machinery has a salvage value of $1,000,000 and will be sold for that amount at the conclusion of the project . The company will increase net working capital by $1,200,000 at the beginning of the project , and it will be liquidated at the end of the project . ASC Inc.'s marginal tax rate is 40%. ASC Inc.'s weighted average cost of capital ( WACC) is 10 % 1) -30,200,000 2) -32,000,000 3) -31,600,000 4) -29,400,000 5)-88,200,000

Given the data in the following table, the initial net cash flow of the project (i.e., CFO) is $ - NOTE: The table below applies to questions 32 to 36 (it is included on each of these questions). ASC, Inc. is considering the production of a new line of soft drinks at its Springfield, IL plant. The CFO of ASC, Inc. is provided with the following information on the new project. > The expansion will require the immediate purchase of new machinery for $29,000,000. 7. The firm has spent $1,000,000 to train workers to use the new machinery. The incremental sales from this project are expected to be $19,500,000 per year. The incremental operating expenses (excluding depreciation) are expected to equal $11,300,000 per year. > The company uses straight-line depreciation. The project has an economic life of 10 years. The machinery has a salvage value of $1,000,000 and will be sold for that amount at the conclusion of the project. > The company will increase net working capital by $1,200,000 at the beginning of the project, and it will be liquidated at the end of the project. > ASC Inc.'s marginal tax rate is 40%. - ASC Inc.'s weighted average cost of capital (WACC) is 10%. 1) 30,200,000 2) 32,000,000 3) 31,600,000 4) 29,400,000 5) 88,200,000