Zinc Corporation is in the business of manufacturing parts for cars and is expanding its business in USA. The company is considering an additional plant in Alabama The following information has been gathered to assess this project: The initial investment required is USD 2 million. Inflation in US is projected to be 3% for next 5 years. Project manager expects the year 1 price per unit is $15 will remain constant for next five years. It is also expected the project will run 40% capacity in year 1,50% in year 2,80% in year 3 , and 100% for year 4 and 5 . The maximum plant capacity is 3,000,000 units per year. The variable costs will increase by rate of inflation in US. The variable costs for the year 1 is USD 8 . The sales and general expenses are expected to be 10% of the total sales. The investment in Plant and equipment is USD 1.5 million. It will be fully depreciated in 5 years. The US corporate tax rate is 35%. The changes to net operating working capital is 3.5% of sales revenue. The plant will experience no additional capital expenditure. The interest expenses is $150,000 per year and will remain same. The project will be terminated in Year 5 . The terminal value of the project is the present value of perpetual free cashflow in the 5 th year. The growth rate in cash flow is assumed to be zero. The WACC for the project is 10.75% Calculate the NPV for the project. 60,240,591 61,331,800 65,771,324