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PLEASE PAY ATTENTION TO THE NUMBERS!!! Please do not answer with different questions's answer!!! THE NUMBERS ARE DIFFERENT!!! Quantitative Problems sumshine 5 moothies Company (55C)

PLEASE PAY ATTENTION TO THE NUMBERS!!! Please do not answer with different questions's answer!!! THE NUMBERS ARE DIFFERENT!!!
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Quantitative Problems sumshine 5 moothies Company (55C) mahulactures and distnbutes smoother. 55C is conaidering the development of a new line of highiprotein energy smocthien. 55C ' Cro has colleded the following information regarding the proposed project, which is expected ta last 3 years - The groject can be operated at the company's Charleston plant, which is currently vacant. - The project will require that the compary spend $4 million todoy (t0) to purchase additional equigment this equipment is eligble for 100% bonus depreciation, so the equipment is fully depreciated at the time of as purchase. The company flans to use the equipment for all J years of the projecti Mt=3 (which is the project's last year of eperacion), if equipment is expected to be wold for $1,200,000 belore taxes. - The project will require an increase in net operating warking coptal of $730,000 at t=0, the cost of the working capital will be fully recorvered at t - 3 (which is the oroject's lant vear of operation). - Expected high-protein energr smoothe sales are as followsy. Yeat Sales 123$2,200,0007,750,0003,500,000 - The project's anhual onerating costs (exduding depreciation) are expected to be toos of sules. - The company's tax rate is 25%. projects. (That in, aswame thot if there are any tax gedits reloted to the rreject they can be whed in the year they occur.) - The project has a WACC - 10.0\%, Narv inch. Should the fim acceat the nroject? depend on whether the "weight lass" smoothe is well recerved by consumers. There is a soss chance that idemand will be good, in which ohse the project wilf groduce after-tak covh flows of to 2. decomal places. Do not round your untermiediate calculations. Use the values in "nullions of dollars" to askertan the answer, millions of dollars Quantitative Problemt Sunshine Setcothies Conpany (S5C) manulactures and distributes smoothies, 55C is considering the development of a new line of high protein energy smoothieg. sSCis Cro has collected the folloming intormstion regording the proposed project, which is expected to last 3 years? - The project can be operated at the compiny's Charleston plant, which is currently vacant. - The project will require that the company spend $4 miltion today (t=0) to purchase additional equipment. This equiproent is eligble for took. bonus depreciationt, so the equipanent at fully dearecainid at the turie of its purchuse. The company plans to wse the equipment for all 3 yearn of the projec. Mrt=3 (which is the propect's lat year af operation), the equiliment is rexpected to be ald for 51,200,000 before toxes. ol overation). - Eapecied beh-proten energy anoothie sales are as followsi Year Sales 12317,200,0002,750,0003,500,000 - The projects annuai operating costs (excluding depreciation) are expected to be 60% of sales. - The compery's tax rate is 25%. - The compary is extremely profitable; so if any losses are incurred from the figh-protein energy snoothie project ther can be used to parnally officet taxes paid on the cuminyy's. other. projects (Thas ith, assume that it there an any tax qredins related to this projoct they can be used in the year they ocour.) - The project has a WACC =10.05 : Should tor fims accept the nroanct

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