2024 – Apix is considering coffee packaging as an additional diversification to its product line

 Apix is considering coffee packaging as an additional  diversification to its product line. Here’s information regarding the  coffee packaging project:Assume a WACC of 10%.• Initial investment  outlay of $40 million, consisting of $35 million for equipment and $5  million for net working capital (NWC) (plastic substrate and ink  inventory); NWC recoverable in terminal year
• Project and equipment life: 5 years
• Sales: $27 million per year for five years
• Assume gross margin of 50% (exclusive of depreciation)
• Depreciation: Straight-line for tax purposes
• Selling, general, and administrative expenses: 10% of sales
• Tax rate: 35%Please complete this entirely in words