PEP Corp. is evaluating a new manufacturing location. The company purchased land three years ago for $3.0 million for future site consideration, and the land now has a market value is $3.2 million. The building and equipment will cost $6.8 million, and engineering and site preparation cost will be $.8 million. The company also incurred a cost of $.6 million for a project feasibility study two years ago. What is the proper cash flow amount to use as the initial investment (period 0 ) in evaluating the project? $11.2 million $10.6 millid $11.4 million $10.8 million Question 14 4.2pts National Industries purchased a new filling machine for $4,250,000 for its manufacturing plant and will depreciation the equipment for tax purposes using the MACRS table as follows: Year 1 - 33.33\%, Year 244.45%, Year 314.81% and Year 47.41% The company has a tax rate of 25%. What would be the tax savings from depreciation in year 2 ? $472,281 no tax savings $566,737 $1,889,125