(Cash-flow analysis, break-even points) The Coka company is a soft drink company. Until today, the company bought empty cans from an outside supplier that charges $0.20 per can. In addition, the transportation cost is $ 1,000 per truck that transports 10,000 cans. The Coka company is considering whether to start manufacturing cans in its plant. The cost of a can machine is $ 1,000,000, and its life span is 12 years. The terminal value of the machine is $ 160,000, but the machine will be depreciated on a straightline basis to a salvage value of zero. Maintenance and repair costs will be $150,000 for every 3-year period and will be paid at the end of every 3 years. The additional space for the new operation will cost the company $ 100,000 annually. The marginal cost of producing a can in the factory is $0.17 . The cost of capital of Coka is 11% and the corporate tax rate is 40%. The machine will be straight-line depreciated over 12 years to its terminal value. a. What is the minimum number of cans that the company has to sell annually in order to justify self-production of cans? Start by assuming that annual production is 3 million cans, and then use Goal Seek to find a break-even point. b. Advanced: Use data tables in order to show the NPV and IRR of the project as a function of the number of cans.