Quantitative Problem: Sunshine Smoothies Company (SSC) manufactures and distributes smoothies. SSC is considering the development of a new line of high-protein energy smoothies. SSC's CFO has collected the following information regarding the proposed project, which is expected to last 3 years: . The project can be operated at the company's Charleston plant, which is currently vacant The project will require that the company spend $3.99 million today (t 0) to purchase additional equipment. For tax purposes the equipment will be depreciated on a straight-line basis over 5 years. Thus, the firm's annual depreciation expense is $3,990,000/5-$798,000. The company plans to use the equipment for al13 years of the project. At t 3 ( hich is the project's last year of operation), the equipment is expected to be sold for $1,700,000 before taxes. The project will require an increase in net operating working capital of $730,000 ao. The cost of the working capital will be fully recovered at t-3 (which is the project's last year of operation) Expected high-protein energy smoothie sales are as follows: Year Sales 1 $2,100,000 2 7,900,000 3 3,200,000 * The project's annual operating costs (excluding depreciation) are expected to be 60% of sales. The company's tax rate is 40%. The company is extremely profitable; so if any losses are incurred from the high-protein energy smoothie project they can be used to partially offset taxes paid on the company's other projects. (That is, assume that if there are any tax credits related to this project they can be used in the year they cccur.) The project has a WACC-10.0%. What is the project's expected NPV and IRR? Round your answers to 2 decimal places. Do net round your intermedia ate calculations NPV Should the firm accept the project? -Select- ssc s considering another pro ect; the introduct on o a weight loss smoothie. The pr ect would equire a s 3.6 ilion investment outlay today t 0 The afte -tax cas ows ould depend on whether the "weight loss smoothie is el ece ed by consumers. There is a 40% chance that demand will be good, in which case the project will produce a er tax cash flows of $2.5 million at the end of each ofthe next 3 years There is a 60% chance that demand will be poor, in which case the after-tax cash flows il be $0.55 milion for 3 years. The project is riskier than the firm's other projects, so it has a WACC of 11% The r will know if the pro ect is successful after receiving the cash flows the first year, and a er receiving the first year's cash flows it will have the option to abandon the project. If the firm decides to abandon the project the company will not receive any cash flows after t 1, but it will be able to sell the assets related to the profect for $2.5 million after taxes at t-1. Assuming the company has an option to abandon the project, what is the expected NPV of the project today? Round your answer to 2 decimal places. Do not round your intermediate calculations. Use the values in "millions of dollars" to ascertain the answer milions of dollars