Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash flows of $1.61 million per?year, growing at a rate of 2.4% per year. Goodyear has an equity cost of capital of 8.5%, a debt cost of capital of 6.7%, a marginal corporate tax rate of 38%, and a? debt-equity ratio of 2.4. If the plant has average risk and Goodyear plans to maintain a constant? debt-equity ratio, what? after-tax amount must it receive for the plant for the divestiture to be? profitable?
A divestiture would be profitable if Goodyear received more than ?$ — million after tax. (Round to one decimal? place.)