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A corporation is an entertainment company that produces and distributes digital content and operates its own amusement parks. The company is looking into expanding into

A corporation is an entertainment company that produces and distributes digital content and operates its own amusement parks. The company is looking into expanding into a new market, Hoosiersville. There are several projects the CEO considers investing in to capture the values brought by the market. One project for consideration is an improvement to the existing amusement park in Hoosierville.
If the project gets approved, the company expects an annual sale of $19.6 million from ticket sales, food, and concessions at the park, with an expected growth of 2.5% annually. The annual operating expenses are expected to be 34% of sales, and the working capital(needed immediately) is expected to be 10% of thenext yearssales.
In addition, the CEO determines that the new park will need to buy a new rollercoaster which will have a $3 million upfront cost. The rollercoaster will be depreciated straight-line for eight years and is expected to have a salvage value of $550,000 based on the accounting department's best estimatewhen purchasing the rollercoaster.
If the company will be able to sell the roller coaster for $600,000 at the end of the project,what will be the net cash flow from the disposal of the roller coaster in year 8?
Assume the corporate tax rate is 21%, and the remaining networking capital can be recovered at the end of the project.

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