Question: please help USE THE TABLE BELOW TO ANSWER THE FOLLOWING THREE (3) QUESTIONS Lee, Inc, is considering the production of a new line of soft
USE THE TABLE BELOW TO ANSWER THE FOLLOWING THREE (3) QUESTIONS Lee, Inc, is considering the production of a new line of soft drinks at its Springfield, IL plant. The CFO of Lee, Inc. is provided with the following information on the new project: - The expansion will require the immediate purchase of new machinery for $40,000,000. - 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 $10,300,000 per year. - The company uses straight-line depreciation. The project has an economic life of 10 years. The machinery has a salvage value of $4,000,000 and will be sold for that amount at the conclusion of the project. - The company will inerease net working capital by $1,100,000 at the beginning of the project, and it will be liquidated at the end of the project. - Lee Inc.'s marginal tax rate is 40%. - Lee Inc, 's weighted average cost of capital (WACC) is 10%. 32. Based on this information, the initial net cash flow of the project (i.e., CF0) is S 33. Based on this information, the project's operating net cash flow in year 5 is $ 34. The IRR of this project is %. 35. The NPV of this project is $
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