TeleStark is considering building a new manufacturing plant. This plant will cost $10 million to build. The new plant will produce cash inflows of $1.5 million per year for the next 14 years. TeleStark already owns the land on which it intends to build the new plant. TeleStark spent $1 million to excavate the land and prepare it for development. Rather than building the plant, TeleStark could sell the land for $1.75 million. If TeleStarks required return is 8.3%, should it build the plant? How much value does this project create (or destroy) in todays (time 0) dollars?

Answer: Yes, the plant has an NPV of $403,746.61

Please show how the answer was calculated