McCormick & Company is considering a project that requires
an initial investment of $24 million to build a new plant and
purchase equipment. The investment will be depreciated as a
modified accelerated cost recovery system (MACRS) seven-year class
asset. The new plant will be built on some of the company's land,
which has a current, after-tax market value of $4.3 million. The
company will produce bulk units at a cost of $130 each and will
sell them for $420 each....