Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash flows of $1.61

million peryear, growing at a rate of 2.3%

per year. Goodyear has an equity cost of capital of 8.7%,

a debt cost of capital of 6.8%,

a marginal corporate tax rate of 35%,

and adebt-equity ratio of 2.4.

If the plant has average risk and Goodyear plans to maintain a constantdebt-equity ratio, whatafter-tax amount must it receive for the plant for the divestiture to beprofitable?