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Aero Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet 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 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 marketing study to determine consumer demand (@t=0). 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 $25,278,624 (excluding land, hint: land is not subject to depreciation). If the project is undertaken, the company will realize an additional $8,000,000 in sales over each of the next ten years. (i.e. sales in each year are $8,000,000) 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. At t = 10, the project is expected to cease being economically viable and the factory (including land) will be sold for $4,500,000 (assume land has a book value equal to the original 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 project's outflow at t=0? Answer to the nearest whole dollar value

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