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17.02% 17.09% company is considering a new turkey farm to service its western region stores. Currently, stores 850000 turkeys per year a cost per bird

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17.02% 17.09% company is considering a new turkey farm to service its western region stores. Currently, stores 850000 turkeys per year a cost per bird to believe that their new farm will lower the cost per bird to $8.5, while maintaining the average selling price of $13 per bird. Inventory will need Shipping expenses will increase to $1.25 per bird. $555000 by live turkeys. Additionally, labor cost will increase annually. land and s2000000 for constructing building and It will cost s1300000 to purchase the straight-line method and equipment. Building and equipment are dep on building After 8 years, the company to sell the for equipment at their salvage value of $250000. The company's marginal tax rate is 35% Calculate the initial outlay (IO), annual after-tax cash flow for each year (ACF), and terminal cash 15 flow (TCF) for this project. A IO: 3300000, ACF: $767813, TCF: $1750000 B IO: 3300000, ACF: $767813, TCF: $1900000 C IO: 3450000, ACF: $986563, TCF: $1900000 D 10: S-3450000, ACF: S986563, TCF: $1830000 Page 4 of 6

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