CFO of Lee, Inc. is provided with the following information on the new projest The expansion will require the immediate purchase of new machinery for Use the following information to answer questions 11-3M Lee, Inc, is considering the production of a new line of soft drinks at its Springfield,Il. plan The 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 S $30,000 I operating expenses (excluding depreciation) are expected to equast 9,300,000 per year Th e 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 S1,600,000 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%. 31 Based onthisinformation, the initial net cash flow of the project (ie., CFO) is $ a. -31,200,000 . -31.400,000 -31,600,000 -31,800,000 c. -32.000,000 32. Based on this information, the project's operating net cash flow in year 5 is a. 6.280,000 b. 6,680,000 c. 6,080,000 d. 7,180,000 e. 7,280,000 %. 33. The IRR of this project is a. 19.40 b. 17.19 c. 14.88 d. 15.93 e. 16.18 34. The NPV of this project is S a. 14,134,861.08 b. 10,571,012.16 c. 7,007,163.24 d. 7,816,794.85 e. 10,503,535.11