(Ignore income taxes in this problem.) Axillar Beauty Products Corporation is co

(Ignore income taxes in this problem.) Axillar Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery. The machinery will cost $375000 is expected to have a useful life of 10 years and is expected to have a salvage value of $50000 at the end of 10 years. The machinery will also need a $35000 overhaul at the end of Year 6. A $40000 increase in working capital will be needed for this investment project. The working capital will be released at the end of the 10 years. The new shampoo is expected to generate net cash inflows of $85000 per year for each of the 10 years. Axillars discount rate is 16%.Required:a.What is the net present value of this investment opportunity?b.Based on your answer to (a) above should Axillar go ahead with the new conditioning shampoo?(Points : 35)

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