USE THE TABLE BELOW TO ANSWER THE FOLLOWING THREE (3) QUESTIONS

(Round to three decimal points)

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 $30,000,000.

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 $1,000,000 and will be sold for that amount at the conclusion of the project.

The company will increase net working capital by $1,400,000 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 $ _______.

33. Based on this information, the projects operating net cash flow in year 5 is $_______.

34. The IRR of this project is _____%.

35. The NPV of this project is $_____.