Archer Daniels Midland Company is considering buying a new farmthat it plans to

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Archer Daniels Midland Company is considering buying a new farmthat it plans to operate for 10 years. The farm will require aninitial investment of $12.10 million. This investment will consistof $2.90 million for land and $9.20 million for trucks and otherequipment. The land all trucks and all other equipment isexpected to be sold at the end of 10 years at a price of $5.16million $2.50 million above book value. The farm is expected toproduce revenue of $2.04 million each year and annual cash flowfrom operations equals $1.90 million. The marginal tax rate is 35percent and the appropriate discount rate is 9 percent. Calculatethe NPV of this investment. (Round intermediate calculations andfinal answer to 2 decimal places e.g. 15.25.)

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