Dear Tutor,

Please solve the below mentioned question and provide answers along with proper workings and explanations

(pls do not use excel format or excel formulas to answers the below questions)

Thank you!!

Q1) Please solve the question using the image provided below and give detailed explanation and provide step by step manual working with explanations

1. Relevant Cash Flows [LO1] Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $6 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $6.4 million. The company wants to build its new manufacturing plant on this land; the plant will cost $14.2 million to build, and the site requires $890,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? Why?12 SELL ALLLE WA 4. Calculating OCF [LO1] Consider the following income statement: Sales $824,500 Costs 538,900 Depreciation 126,500 EBIT Taxes (34%) ? Net incomeFill in the missing numbers and then calculate the OCF. What is the depreciation tax shield