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Using the information in the following chart, the NPV of this project is $ ASC, Inc. is considering the production of a new line of

Using the information in the following chart, the NPV of this project is $
ASC, Inc. is considering the production of a new line of soft drinks at its Springfield. II 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 $39,000,000.
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 $21,300,000 per year. The incremental operating expenses (excluding deprecintion) are expected to equal $11,300,000 per year.
The company uses straight-line depreciation the projet has an economic life of 20 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.'s marginal tax rote is 40%.
ASC Inc.'s weighted average cost of capital (WACC) is 14%.
10,503,535.11
None of the answers in this list is within $10 of the correct answer.
14,134,861.08
4,732,438.32
9,269,815,19
6,467,513.10
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