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Please help Sbrek Casting Cempany ir considering adding a new line to its product mix. The prodaction lise would be sef up in uaned space

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Sbrek Casting Cempany ir considering adding a new line to its product mix. The prodaction lise would be sef up in uaned space in Shrek's main plant. The machinery't inoice price wosld be approximately $190,000; another $10,000 in shipping charges aould be required; and it would cost an additional 50,000 to iastall the equipment. The machinery has an ecosomic life of 4 years, and rould be a class 9 with a 20%6 CCA rate. The machinery is expected to have a salrage ralue of $15,000 after 4 vears of ute. The nen lise noald generate iscremeatal sales of 1,400 units per year for four years at an incremental cost of 5125 per unit in the furst year, excluding depreciatios. Fach unit can be sold for $225 in the first year. The sales price and cont are eapected to increase by 356 per year due to inflation. Further, to hasdle the pem line, the firm's net operating worlaing capital woeld have to increase by an amount of $35,000. The firm'r tar rate is 2945 , and its orerall neighted average cost of capital is 11 percest. L. Urilize the Components Cash Flaws Approach to analyze Shrek's aew product project

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