Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7.7 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $10.5 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $21.7 million to build, and the site requires $920,000 worth of grading before it is suitable for construction.

What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?(Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow

Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $27,200, and the company expects to sell 1,570 per year. The company currently sells 2,070 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,890 units per year. The old board retails for $23,100. Variable costs for both boards are 57 percent of sales, depreciation on the equipment to produce the new board will be $1,520,000 per year, and fixed costs are $1,420,000 per year.

If the tax rate is 35 percent, what is the annual OCF for the project?(Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.)

OCF$