Windswept, inc. 2010 income statement ($ in millions) net sales $ 8,700 less: cost of goods sold 7,340 less: depreciation 405 earnings before interest and taxes $ 955 less: interest paid 82 taxable income $ 873 less: taxes 306 net income $ 567 windswept, inc. 2009 and 2010 balance sheets ($ in millions) 2009 2010 2009 2010 cash $ 150 $ 185 accounts payable $ 1,180 $ 1,260 accounts rec. 920 730 long-term debt 1,000 1,265 inventory 1,520 1,550 common stock $ 3,210 $ 2,900 total $ 2,590 $ 2,465 retained earnings 460 710 net fixed assets 3,260 3,670 total assets $ 5,850 $ 6,135 total liab. & equity $ 5,850 $ 6,135 what is the return on equity for 2010?

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?