Question: Using the information in the following table. this project is 3 the initial net cash flaw ( ke . CFO ) farA.SC , Inc. is

Using the information in the following table. this project is 3the initial net cash flaw (ke. CFO) farA.SC, Inc. is considering the production of a new line of soft drinks at its Springfield. It 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 $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 $21,300,000 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 20 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 14%.X

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