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Walmart is considering investing $3 million in an automaticsewing machine to produce a newly designed line of dresses. Thedresses will be priced at $300, and management expects to sell12,000 per year for six years. There is, however, some uncertaintyabout production costs associated with the new machine. Theproduction department has estimated operating costs at 70% ofrevenues, but senior management realizes that this figure couldturn out to be as low as 65% or as high as 75%. The new machinewill be depreciated at a rate of $300,000 per year for six years(straight line, zero salvage). Walmart’s cost of capital is 15% andits marginal tax rate is 30%. Calculate a point estimate along withbest and worst case scenarios for the project’s NPV.Cash flow in years 1-565%70%75%RevenuesOperating CostsDepreciationEBT impactTaxEat impactAdd back depreciationCash flow  BestPoint EstimateWorst