Cash Flow Problem REMEMBER THIS IS A 4 YEAR PROJECT

(Please show all work)

New factory = $10,000,000

Tear down Old factory which cost to build = $2,000,000

Instead of building new factory, can sell the land for = $500,000

New factory has a life of 5 Years but the project is 4 years so depreciate straight line over 5 years

Salvage Value at the end of 4 years = $1,000,000

Revenue= $5,000,000 per year

Variable Costs = $1,000,000 per year

Fixed Costs excluding depreciation = $500,000

WACC=10%

Tax Rate = 30%

WHATS THE NPV OF THIS PROJECT?