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Use the following information to answer questions 34-38. ASC, Inc. is considering the production of a new line of soft drinks at its Springfield, IL plant. The CFO of ASC, Inc. is provided with the following information on the new project: The expansion will require the immediate purchase of new machinery for $29,000,000. 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 $19,500,000 per year. The incremental operating expenses (excluding depreciation) are expected to equal $11,300,000 per year. > The 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 $1,200,000 at the beginning of the project, and it will be liquidated at the end of the project. > ASC Inc.'s marginal tax rate is 40%. ASC Inc.'s weighted average cost of capital (WACC) is 10%. 34. Based on this information, the initial net cash flow of the project (i.e., CF0) is \$ a. 29,400,000 b. 30,200,000 c. 31,600,000 d. 28,200,000 e. 32,000,000 37. The NPV of this project is $ a. 14,134,861.08 b. 9,269,815,19 c. 7,761,380.56 d. 7,816,794.85 c. 10,503,535.11 38. Based on this information, the CFO will conclude that ASC should a. accept the project since NPV >0 b. reject the project since NPV