Apix is considering coffee packaging

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 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 

    • 8 years ago
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