Quantitative Problemt Sunshine Smoothies Compamy (5SC) mamulactures and distributes smoothies, SSC is considering the development of a new line of high-protein energy smoothies, SSC-s cro has collected the following intormation regarding the proposed project, which is expected to last 3 years: - The project can be operoted at the company's Charleston plant, which is currently vacant. - The project will require that the company spend $4.5 milbon today (t=0) to purchase additional equipment. Far tax purpeses the equipment wili be deprecated on a straight-line basis over 5 years. Thus, the firm's annual depreciation expense is 54,500,000/5=3900,000. The company plans to use the equipment for all 3 years of the project. At t=3 (which is the project's lost yoer of operetion), the equipment is expected to be sold for $1,800,000 before taxes - The project will requere an increase in net operating working capital of $730,000 at t=0. The cost of the working capital will be fully resovered ot t = 3 (which is the project's last year of operation). - Expected high-protein energy smoothie sales are as follows: Year Soles 123$2,100,0008,000,0003,150,000 - The project's annual operating costs (excluding depreciation) are expected to be 60% of sales. - The campany's tax rate is 40%. - The company is extremely profitable; so if any losses are incurred from the high-protein energy smoothie project they can be used to partially offset taxes paid on the company's other projects. (That is, assume that if there are any tax credits related to this project they can be used in the year they occur) - The project has a WACC =10.0% What is the project's expected NPV and IRR? Do not round intermediate calculations. Round the monetary value to the nearest cent and percentage value to two decimal places. Should the firm accept the project? 5SC is considening another project: the introduction of a "weight loss" smoothie. The project would require a $3.2 milion investment outlay today ( t=0 ). The after tax cosh flows would depend on whether the weight loss smoothie is well received by consumers. There is a 40% chance that demand will be good, in which case the project will produce after-tax cash flows of $2.3 milion at the end of each of the next 3 years. There is a 60% chance that demand will be poor, in which case the after-tax cash flows will be $0.49 million for 3 years. The project is riskier than the firm's other projects, so it has a WAcC of 117. The firm will know if the project is successful after receiving the cash flows the first year, and after receiving the first year's cash flows it will have the option to abandon the project. If the firm decides to abandon the project the company will not receive any cash flows after t = 1 , but it will be able to sall the assets related to the project for $2.5 million after taxes at t=1. Assuming the company has an option to abandon the project, what is the expected NPV of the project today? Do not round intermediate calculations. Round your answer to two decimal places. Use the values in "millions" to ascertain the answer, Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. million