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Acro Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet the demand for a new line of solar-charged motorcycles (who Wants

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Acro Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet the demand for a new line of solar-charged motorcycles (who Wants to fide on a elouty day amywary The proposed project has the following festures: - The firm just spent $300,000 for a marketing study to determine consumer demand (Q t=0). - Aero Motorcycles purchased the land the factory will be buit on 5 years ago for $2,000,000 and owns it outright (that is, it does not have a mortgage) The land has a current market value of $2,600,000. - The project has an initial cost of $20,000,000 (cxcluding land, hint: the land is not subject to depreciation). - If the project is undertaken, at t=0 the company will need to increase its inventories by $3,500,000, accounts recelvable by $1,500,000, and its accounts payable by $2000.000. This net operating working capital will be recovered at the end of the project's life (t=10). - If the project is undertaken, the company will realize on additional $8,000,000 in sales over each of the next ten years, (i.e. sales in cach year are $8,000,0001 - The company's operating cost (not includine depreclation) will equal 50% of sales. - The compary's tax rate is 35 percent. - Use a 10-year stralght-line depreclation sehedule. - At t=10, the project is expected to cease being econoenically viable and the factory (including land) will be sold for $4,500,000 (assume tand has a book value equal to the oripinal purchase price. - The project's WACC =10 percent - Assume the firm is profitable and able to use any tax credits (i.e, negative taxes) What is the total cash flow at t=10 ? Round to nearest whole dollar value

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