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Using the information in the following table, the project's total cash flow ( i . e . s . operating cash flow plus non -

Using the information in the following table, the project's total cash flow (i.e.s. operating cash flow plus non-operating cash flow) in year 20 is $ q,
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 $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 depreciation) are expected to equal $11,300,000 per year.
The company uses straight-line depreciation. The project 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 rate is 40%.
ASC Inc.'s weighted average cost of capital (WACC) is 14%.
6,760,000
7,960,000
8,960,000
6,680,000
8,920,000
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