Stone & Mason, Inc.'s Sales projections indicate that it needs a new manufacturing facility. The company owns vacant land which it purchased 4 years ago for $3.8 Million on which the new building could be erected; but the company recently received a $6.1 Million cash offer for the land. Construction costs for the new plant will be $10.75 Million; and the company expects to spend $825,000 to prepare the site for construction. The construction project will also require investment in an upfront Working Capital Line of Credit of $250,000.

A) What is the Yr0 Cash Flow which should be used to evaluate the project? (This question required you to figure out what Cash Flow are "in" and which are "out".) (5 POINTS)

B)Using you answer above, what is the minimum annual TOTAL CASH FLOW which the project must generate each year of its seven years of operation to justify proceeding with the project if its required rate of return is 16%?(This is a simple ANNUITY question; don't read too much into it and be consistent with your answerabove!!!!!!!!!)(3POINTS)