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Use the following information for the next four questions: The Umbrella Corporation is considering expanding one of its production facilities to research a new type

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Use the following information for the next four questions: The Umbrella Corporation is considering expanding one of its production facilities to research a new type of zombie, which will hopefully not result in another zombie outbreak. The project would require a $21,000,000 capital investment and will be depreciated (straight-line to zero) over its 3 year life. They know that they will be able to salvage $8,500,000 for the equipment at that time. Incremental sales are expected to be $15,750,000 annually for the 3 year period with costs (excluding depreciation) of 30% of sales. The company would also have to commit initial working capital to the project of $2,500,000. The company has a 30% tax rate, and requires a 12.5% rate of return for projects of this risk level. What is the Projects NPV? Should we take the Project? Select one: O a. $3,437,500; yes O b. - $3,800,605; no O c.-$2,800,412: no d. 55,813,552; yes e. $6,056,010: yes

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