t=1 is 3212500

same for t=2

ATSV is 4,500,000

t=10 is 10712500

land market value is 2752966 (in pic)

what is NPV

D Question 5 5 pts Aero Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet the demand for a new line of solar charged motorcycles (who wants to ride on a dloudy day anyway?) The proposed project has the following features: The firm just spent $300,000 for a marketing study to determine consumer demand (@t-o). Aero Motorcycles purchased the land the factory will be built on 5 years ago for $2,000,000 and owns it outright (that is, it does not have a mortgage). The land has a current market value of $2,752,966. The project has an initial cost of $20,000,000 (excluding land, hint: the land is not subject to depreciation). If the project is undertaken, att - the company will need to increase its inventories by $3,500,000, accounts receivable by $1.500,000, and its accounts payable by $2,000,000. This net operating working capital will be recovered at the end of the project's life (t = 10) If the project is undertaken the company will realize an additional $8,000,000 in sales over each of the next ten years. (le, sales in each year are $8,000,000) The company's operating cost (not including depreciation) will equat 50% of sales. . The company's tax rate is 35 percent Use a 10-year straight line depreciation schedule, Att - 10, the project is expected to cease being economically viable and the factory (including tand) will be sold for $4,500,000 tassume tand has a book value equal to the original purchase price) The project's WACC - 10 percent . Assume the firm is prontable and able to use any tax credits (ie negative taxes What is the project's NPV? Round to nearest whole dollar value