1. Tesla is planning to open its first manufacturing plant (for the production of batteries) outside the US. You are one of the financial analyst that will help assessing the feasibility of the investment.

2. Tesla has commissioned one of the Big Four Consulting firm to provide some recommendations with regard to the current legal regulations in China. The consulting service fees will amount to 1 million dollars.

3. The Chinese government has in place a support scheme for foreign companies that invest in the manufacturing industry. The Chinese government will pay a 10% cash grant of the initial capital investment (this will be paid as a lump sum at the time of the investment).

4. Suppose that the life of the project is 10 years and the initial investment in the project today is 500 million dollars.

5. The plant will be depreciated to $0 book value over the 10 years and can be sold by Tesla in year 20 for 150 million dollars.

6. It has been estimated that Tesla would be able to generate gross revenues of 75 million dollars per year (starting at the end of the first year).

7. The new production of batteries in China will have a direct impact on the production of batteries in the US. The revenues generated in US are estimated to drop by 8 million dollars each year.

8. The annual variable costs are expected to be 25% of the incremental annual revenues.

9. The current weighted average cost of capital for Tesla is 12%, and the project has the same risk profile and financial structure of the company. The company tax rate is 30%.

Complete the following table to calculate the free cash flows for this project for every year.