QUESTION 4

Raiders Restaurant is considering the purchase of a $10,000,000 flat-top grill. The grill has an economic life of 7 years and will be fully depreciated using the straight-line method. The grill is expected to produce 400,000 tacos per year for the next 7 years, each taco costing $3.50 to make and priced at $9. Assume the discount rate is 9% and the tax rate is 21%. The restaurant expects the market value of the grill to be $0, 7 years from now.

Calculate the initial cash outflow for the grill (e.g. the time 0 cash flow). (Enter a negative value and round to 2 decimals)