After seeing Fruit Juices success with noncola soft drinks and learning of Cokes and Pepsis interest, Maju Food has decided to consider an expansion of its own in the fruit juice business. The product being considered is fresh lemon juice. Assume that you were recently hired as assistant to the director of capital budgeting, and you must evaluate the new project. The lemon juice would be produced in an unused building adjacent to Maju Food plant; Maju owns the building which is fully depreciated. The required equipment would cost $200,000, plus and additional $40,000 for shipping and installation. In addition, inventories would rise by $25,000, while accounts payable would go up by $5,000. All of these costs would be incurred at t = 0. By a special ruling, the machinery could be depreciated under the MACRS system as 3-year property (33%, 45%, 15%, 7%). The project is expected to operate for 4 years, at which time it will be terminated. The cash inflows are assumed to begin 1 year after the project is undertaken, or at t = 1, and to continue out to t = 4. At the end of the projects life (t = 4), the equipment is expected to have a salvage value of $25,000. Unit sales are expected to total 100,000 cans per year, and the expected sales price is $2.00 per can. Cash operating costs for the project (total operating costs less depreciation) are expected to total 60 percent of dollar sales. Majus tax rate is 40 percent, and its weighted average cost of capital is 10 percent. Tentatively, the lemon juice project is assumed to be of equal risk to Majus other assets. You have been asked to evaluate the project and to make a recommendation as to whether it should be accepted or rejected. (Show all your workings on how you derive the Initial Investment, Operating Cash Flows, Terminal Cash Flows and the decisions criteria of to NPV, IRR and Payback)