Apple is planning to launch a new easy$-$to$-$use kitchen appliance with a touchscreen interface, the iToaster. Apple expects to sell $1$ million and $2$ million units in the first two years after launch, respectively, and then to discontinue this product. Each unit will sell for $$200$ in the first year after launch, and $$150$ in the second year. The costs of components and labor are $$80$ per unit, while salaries and other expenses add up to $$10$ million in each year the product is sold.

The factory that manufactures the iToaster requires an investment of $$90$ million right now and $$45$ million one year from now. It will take one year to complete, so production will only start in the second year. The factory will be depreciated linearly to zero over $5$ years after its completion.

To get production up and running, Apple has to buy components worth $$5$ million immediately before the launch of the product, and add another $$2$ million worth of components to its inventory exactly one year later.

The firm's marginal tax rate is $34\%.$

What is the annual depreciation $($in $ million$)?$

What is the annual depreciation $($in $ million$)?$

What is the after$-$tax operating income in year $3($in $ million$)?$

What is the cash flow from assets $($CFA$)$ at the end of year $0($in $ million$)?$

What is the cash flow from assets $($CFA$)$ at the end of year $1($in $ million$)?$

What is the cash flow from assets $($CFA$)$ at the end of year $2($in $ million$)?$