Quantitative Problem: Sunshine Smoothies Compary (SSC) manufactures and distributes smoothies. SSC is considering the development of a new line of high protein enercy smocthies. SSC's CHO has collected the following information regarding the proposed project, which is expected to last 3 years: - The projart can he aparated at the company's Charlaston plant, which is currantly vacant. * The pru et il require hd the company end S4.1 tn lion oda 1 O to purchase addi onal equip nen Fur ax purposes he equipment wil be depreciated ori a s raight-line baas uver 5 years. Thus he "m's annua depreciation expense 100,000 $820,000, The company plans to use the equipment for all 3 years of the project, Att-3 (wnich is the project's last year of operation), the equipment is expected to be sold for $1,500,000 before taxes * The propct rill require an increase in ret cparating working capita of $731,000 at t = D. The cost cf the working capita will be fully recovered at t 3 which is the project's last ear of operation .Expected high-protein energy smoothie sales are as follows: Year Sales 1 $2,200,non 2 7,750,000 3 3,500,000 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 eneray smoothic project they can be used to partially offset taxes paid on the company's cther projects. (That is, assurme that if there are any tax credits related to this project they can be used in the year they ocour.) What is the project's expected NIPW and IRR? Round your ansners to 2 decimal places. Do not round your intermediate calculations NPV IRR. hould the firm accept the project? should secept t Show All reedback 55C is considering anather project: the introductian of a wlght loss smoathle. The project would require a $3.2 million Investment outlay today (t-0). The after-tax cash flows wauld depend on whether the "weight loss smoothle is well recelved by consumers. There is a 40% chance that demand wil be goed in which se the roject will produce ter-Lax cash flows ur $2.1 million at the end ur eech ofthe next 3 years. There is a 60% chance hat demand will be poor, i hich case the after-tacash flows will be $0.5 million ro years. The project is riskier than the firm's ather prajects, so it has a WACC af 115%. The firm will know if tha praject is succaful after recaiving tha cash flaws the first year, and aftor receiving the first year's cash flows it will hava tha optinn to abandon the project. If the fir decides to abandon the pro ect the company ill not receive any cash to s after t 1, but it ill be able to sell the assets related to the pro ect tor 2.25 milion after taxes at t 1 Assuming the company has an option to abandon the project, hat is the expected NPV of the project today? Round your answer to 2 decimal places. Do not round your intermediate caloulations. Use the values in "millions of dollars" to ascertain the answer millions of dollars