Question No 27 (10 points) Ample co. is thinking about an expansion project. The project will require investment in new machinery worth $1,800,000. An additional $150,000 will be spent on shipping costs for the new machine. In addition, an investment in net working capital of $100,000 will be necessary at the beginning of the project. This investment in networking capital will be fully recovered at the end of the project's life. The life of the project is estimated to be 4 years. In order to check the feasibility of the project, a consultant was hired. She presented her report, and the company paid her $10,000. Also, two employees of the company visited U.K to do some research on the machine. The expenses were $15,000. The project is expected to generate incremental revenues of $800,000 and incremental costs of $450,000 at the end of each year for the life of the project. It is estimated that PV of the tax shield from 4 years of CCA claims on the new machinery will be $448,500, and the estimated salvage value from the sale of the machine at the end of the project is $500,000. The company's tax rate is 30%, and the cost of capital for the project is 10.75%. Determine the NPV of the project and whether Ample should accept it. (10 Points) *** You must show your work to get credit