Ated manufacturer conducted a marketing study _ _`s ago to data?!````^ ^``s preferences .` different types of organic teas . This study was yours_elvis and did^ ^`d'` Decision to start ^ organic tea division today . "I cost them $BOO. 200 to marform this salud^ _ The company is considering introducing new flavors , argente teas . The``!^`!^ ^add A new assembly line SEEI in order to produce the organic tea packages gogg` yang their existing #^``^``` for regular non_armonk_ The project has an anticipated life of A Years. The new assembly line has a cost of $ 1. Too, ooo, It will require Ssod, COULD CUSTOMIZE It to the many specifications for organic toa production , and soon gog for transportation and all^pang to the company's plant The new machine falls into S_years MACRIS category ing;, 3296, 19.2^0. 17.`^ ^0. 17.```` and 5. 7696{` The organic tea production will require inventories to ingmass by 51. zoo. ``^` Like `. In addition , accounts payables and accruals will increase by $5.50. 000 and $150. god respectively . The organic Lea is Expected to generate sales revenue mist. god. god the first Year . The revenue is expected `` increase by $4010, 090 every year . Each year the operating costs (excluding depict`ation ) are expected to Royal 45 percent of sales revenue . In order to do this expansion , the company will borrow &a million . The annual interest Expense on this borrowing $400, 000 . before lax basis . The organic tea is expected to decrease the company's existing non - organic lea sale by $450.000 per year The company can sell the new machine at the and of & years for STO. god in the market. The company's cost of capital is 12 percent . The company's tax rate is. 40 percent