Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash flows of $ $1\mathrm{.}54$ million per$$ year, growing at a rate of $2\mathrm{.}5\%$ per year. Goodyear has an equity cost of capital of $8\mathrm{.}6\%,$ a debt cost of capital of $6\mathrm{.}8\%,$ a marginal corporate tax rate of $33\%,$ and a$$ debt$-$equity ratio of $2\mathrm{.}6.$ If the plant has average risk and Goodyear plans to maintain a constant$$ debt$-$equity ratio, what$$ after$-$tax amount must it receive for the plant for the divestiture to be$$ profitable?

Part $1$

A divestiture would be profitable if Goodyear received more than $$$ million after tax