Q-9-1-9-9

Parker & Stone, Incorporated, is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $8.6 million in anticipation of using it as a worehouse and distribution site, but the company has since decided to rent facillties elsewhere. If the land were sold today, the company would net $11.4 million. The company now wants to bulld its new manufacturing plant on this land; the plant will cost $22.6 millon to buld, and the site requires $1,010,000 worth of grading before it is sultable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? Note: Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole number, e.9., 1,234,567. Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,900,000; The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $3,130,000 in annual sales, with costs of $2,150,000. If the tax rate is 25 percent, what is the OCF for this project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16