Use the following information to answer questions $34-38.$

ASC, Inc. is considering the production of a new line of soft drinks at its Springfield, IL plant. The CFO of ASC, Inc. is provided with the following information on the new project:

The expansion will require the immediate purchase of new machinery for $$29,000,000.$

The firm has spent $$1,000,000$ to train workers to use the new machinery.

The incremental sales from this project are expected to be $$19,500,000$ per year. The incremental operating expenses $($excluding depreciation$)$ are expected to equal $$11,300,000$ per year.

$>$ The company uses straight$-$line depreciation. The project has an economic life of $10$ years. The machinery has a salvage value of $$1,000,000$ and will be sold for that amount at the conclusion of the project.

$>$ The company will increase net working capital by $$1,200,000$ at the beginning of the project, and it will be liquidated at the end of the project.

$>$ ASC Inc.$\text{'}$s marginal tax rate is $40\%.$

$>$ ASC Inc.$\text{'}$s weighted average cost of capital $($WACC$)$ is $10\%.$

Based on this information, the initial net cash flow of the project $($i$.$e$.,$ CF$0)$ is $

a$.-29,400,000$

b$.-30,200,000$

c$.-31,600,000$

d$.-28,200,000$

e$.-32,000,000$

Based on this information, the project's operating net cash flow in year $10$ is $

a$.6,280,000$

b$.6,680,000$

c$.8,240,000$

d$.8,160,000$

e$.7,280,000$

The IRR of this project is $\%.$

a$.19\mathrm{.}40$

b$.15\mathrm{.}56$

c$.14\mathrm{.}88$

d$.17\mathrm{.}02$

e$.16\mathrm{.}18$

The NPV of this project is $

a$.14,134,861\mathrm{.}08$

b$.9,269,815\mathrm{.}19$

c$.7,761,380\mathrm{.}56$

d$.7,816,794\mathrm{.}85$

e$.10,503,535\mathrm{.}11$

Based on this information, the CFO will conclude that ASC should

a$.$ accept the project since NPV $>0$

b$.$ reject the project since NPV $<mn\; id="EditorElement\_236897">0</mn>$

c$.$ accept the project since the payback period is greater than $20$ years

d$.$ reject the project since the payback period is less than $20$ years

e$.$ accept the project since the revenues were increased