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Aero Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet the demand fora new line of solarcharged motorycles (who wants to

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Aero Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet the demand fora new line of solarcharged motorycles (who wants to ride on a cloudy day any way? The proposed project has the fonlowing features: - The firm just spent $300,000 for a marketing study to determine consumer demand ( 8t,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 $20.000.000 (excluding land. hinc 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 receivable by he (s 101 sechear ace $8,000,000 - The company's tax rate is 35 percent - Wes a do vear straight-line depreciation schedule fassume fand has a book value equat to the original purchase price). - The prolects WACC +10 percent What is the operating cash flow t=1 ? Round to nearest whole dollar ralue

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