Apix is considering coffee

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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
• Tax rate: 35% Please complete this entirely in words