Lee, Inc. is considering the production of a new line of soft drinks at its Springfield, IL plant. The CFO of Lee, Inc. is provided with the following information on the new project:

• The expansion will require the immediate purchase of new machinery for $41,000,000.
• 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 $10,300,000 per year.
• The company uses straight-line depreciation. The project has an economic life of 10 years. The machinery has a salvage value of $2,000,000 and will be sold for that amount at the conclusion of the project.
• The company will increase net working capital by $1,300,000 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%

1. Based on this information, the initial net cash flow of the project (i.e., CF0) is $___
2. Based on this information, the projects operating net cash flow in year 5 is $ ___
3. The IRR of this project is ___%.
4. The NPV of this project is $ ___