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You are considering expanding your product line. You fell you can sell 100.000 of these products per year for 4 years (after which time this

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You are considering expanding your product line. You fell you can sell 100.000 of these products per year for 4 years (after which time this project is expected to shut down). The product will sell for $6 each, with variable costs of $3 for each one produced while annual fixed costs associated with production will be $90.000. In addition, there will be a $200,000 initial expenditure associated with the purchase of new production equipment. It assumed that this initial expenditure will be depreciated using the simplified straight line method down to zero over 4 years .This project will also require a one-time initial investment of $30,000 in net working capital associated with inventory. Finally, assume that the firm's marginal tax rate is 34 percent

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