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Aero 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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Aero 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 ride on a cloudy.day anyway? The proposed project has the following features The firm just spent $300,000 for a marketing study to determine consumer demande t-01 Aero Motorcycles purchased the land the factory will be built 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 (excluding land, hint the land is not subject to depreciation. If the project is undertaken, att - the company will need to increase its inventories by $3.500.000, accounts receivable by $1,500,000, and its accounts payable by $2,000,000. This net operating working capital will be recovered at the end of the project's life it = 10). If the project is undertaken the company will realize an additional 58.000.000 in sales over each of the next ten years. Le sales in each year are 58.000.000 The company's operating cost not including depreciation will equal 50% of sales The company's tax rate is 35 percent Use a 10-year straight-line depreciation schedule AL-10, the project is expected to ease being economically viable and the factory (including and will be sold for $4,500,000 lassume and has a book value equal to the original purchase price The projects WACC= 10 percent Assume the firm is probable and able to use any tax credits lie negative tavesi What is the total cash flow at 102 Round to nearest whole dollar value

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