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Question 6 1 pts Company XYZ will invest in a 3-year project that will result in sales of 4,000 items in year 1, at

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Question 6 1 pts Company XYZ will invest in a 3-year project that will result in sales of 4,000 items in year 1, at a selling price of $12 each, and a cost of $8.40 each. The number of items sold is estimated to grow by 10% per year. The per unit selling price and cost will remain unchanged over the three years. The tax rate is 35%. A machine for the project will cost $40,000. The present value of the CCA tax shield on the machine is $6,084. The production of this new product line will result in additional working capital balances at the end of each year as follows: Year 0: Zero balance Year 1: $2,160 Year 2: $2,333 Year 3: Zero balance The NPV of this project at a discount rate of 10% is: O -$1,760 $4,324 -$8,743 $5,449

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