Enter a number for each cost below. Do not use commas.

Construction costs: The estimated upfront cost of constructing the facility at time $=0$ is $$10$ million

Land sale price$=$ If this project is done then the land on which the facility would be built would be sold for $$5$ million immediately.

Net work capital: if the new facility is opened, Terrapin texts will increase inventory by $$2$ million and accounts payable by $$1$ million at a time $=0.$ The company$$s net working capital will be recovered at time $=0$

Depreciation: For tax purpose, the facility would be depreciated on a straight line basis to zero over $5$ years

Salvage value: the company plans to operate the facility for $5$ years and it estimated today the the facility$$s market value at a time $=5$ will be $$3$ million

Impact on sales: if the facility is opened, it will increase the company$$s sales by $$7$ million each year for the $5$ years that will be operated

Operating costs: the operating costs $($excluding depreciation$)$ are expected to equal $$3$ million a year

Tax rate: the company$$s tax is $40\%$

Inflation: inflation is estimated to be $4\%$ a year for the life of the project. It will not impact the year $1$ cash flows but will start after the end of year $1$

Year $1$ operating cash flows

Revenues $=$ $

Costs $=$ $

Depreciation $=$ $

Tax rate $($decimal$)=$

Total FCF $=$ $