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BoeBus Air is considering increasing production of the 525 Airliner at their South Carolina assembly plant....

BoeBus Air is considering increasing production of the 525 Airliner at their South Carolina assembly plant. You have been provided the following pieces of information: a. The expansion will require the purchase of machinery costing $50,000,000. b. The firm has spent $250,000 to train workers to use the new machinery. c. The sales from this project will be $18 million per year. d. Operating costs will increase by $3.6 million per year. e. The firm uses straight-line depreciation. The project has an economic life of 20 years. The machinery will be fully depreciated and will have a salvage value of $5,000,000. f. Because of the project, the firm will need additional net operating working capital of $3,500,000, which can be liquidated at the end of 20 years. i. The firm's marginal tax rate is 40%. The project's incremental cash flow in year 1 (CF1) is ?

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