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Powoline Products, inc, in considering introducing a new cliptical trainer, the NOVID-19, for the home market. The CFO of Powaline has assembled the following financial

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Powoline Products, inc, in considering introducing a new cliptical trainer, the NOVID-19, for the home market. The CFO of Powaline has assembled the following financial information about this new product Last month. Powoline Products hired a marketing company to conduct a survey of its current users to determine the potential market demand for a new product. Powie received the marketing report last week along with a bill for $250,000 asking for payment in 10 days Powaline Products will need to spend $14,300,000 today to build a new factory to manufacture and assemble the NOVID-19. This investment will be depreciated on a straight-line basis to a $1.000.000 salvage value over 10 years. Powoline Products intends to sell the factory in 10 years for $1,000,000 Production of the NOVID-19 will require an immediate increase in not working capital of $3,000,000. This investment will be fully recovered at the end of the life of the project Revenue from sales of the NOVID-19 are expected to be $13,000,000 per year for each of the next 10 years The NOVID-19 is expected to decrease sales of other Powoline Products elliptical trainers by $1,000,000 per year for each of the next 10 years Incremental direct costs to the entire company associated with producing and selling the NOVID-19 are estimated to be $7,000,000 per year for each of the next 10 years Powaline Products marginal tax rate is 25% Poweline Products weighted average cost of capital (WACC) is 12% Based on the information provided above, what is the initial Investment (CE) for this project? Enter your answer as a dollar amount rounded, if necessary to decimal place. Do not include the dollar sign or any common in your answer. For example, record 514 240,716.04 14240717 the final value is a net cash outflow, put a hyphen before your number with no space between the hyphen and the number. For example, ontera cash outflow of 51,243.200 1243200 Your Answer: MacBook Pro A # 3 $ 4 % 5 & 7 6 8 2 T R U Y E 2 W C H G D F S M . V N B c

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