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You are evaluating whether to proceed with the next phase of your company's compact battery project. The intent of compact batteries is to store off-peak

You are evaluating whether to proceed with the next phase of your company's compact battery project. The intent of compact batteries is to store off-peak power (e.g., electricity generated at night) for use during on-peak demand. Your compact battery prototype is large enough to power one standard home. Additional development costs required before production are estimated to be $5.85 million. The tax rate is 29.7%. These development costs would be an upfront expense. What is the marginal cash flow for the expected additional development costs to include in the evaluation of the compact battery project?

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