Garca and Martinez manufacture widgets and currently have $8 million in taxable income. The company is considering an expansion, and they've asked you to evaluate the project. The expansion requires the firm to produce 65,000 widgets a year for 6 years, and the company estimates they can sell them for $30 per widget. Garcia and Martinez estimate they will need an additional $4,000,000 worth of machinery. The machinery costs $120,000 a year to operate and maintain. The machinery's depreciable life is 7-years, and the company expects to salvage the machinery for $160,000 at the end of year 6. If the project is accepted, the company will immediately increase inventory by $500,000 and maintain the new inventory level over the project's life. Similarly, the company will immediately add $50,000 to their cash balance at start-up and then again in year 1 and maintain that higher cash balance over the project's life. The investments in cash and inventory will be recovered when the project is completed. The marginal cost of producing a widget is ral...late the nrniert'e NPV by linking to the information/variable values in Column K