18. Based on the information provided, what is the pre-tax operating income in year 17 You can use the cash flow from the operation table to facilitate your calculation. (6 points) A. $1,000,000 B. $750,000 C. $666,700 D. $250,000 19. Based on the information provided, what is the cash flow from operation in year 1? You can use the cash flow from operation table to facilitate your calculation. (6 points) A. $766,655 B. $650,000 C. $433,355 D. $250,000 20. Based on the information provided, what is the cash flow from change in net working capital in year 0? You can use the cash flow from net working capital table to facilitate your calculation. (6 points) A. 1,500,000 cash inflow B. 1,500,000 cash outflow C. 2,500,000 cash inflow D. 2,500,000 cash outflow *: PUX (2+) = EV initial invecs. Exam III FIN 301 FV/.. Part III. Cash Flow Analysis ABC Teacup. Inc., projects unit sales for new reusable teacups as follows: Year 2 Unit Sales 200,000 200,000 3 200,000 Production of the teacups will require $1,500,000 in net working capital to start. There are no further increases in net working capital over the project life, and by the end of the project year, the net working capital account will recover to zero. Total fixed costs are $3,000,000 per year, variable production costs are $10 per unit, and the units are priced at $30 each. The equipment needed to begin production has an installed cost of $1,000,000. This equipment qualifies as three-year MACRS property (shown below). By the end of the third year, this equipment will have salvage value of 25% of its acquisition cost. ABC Teacup, Inc. is in the 15% marginal tax bracket and has a required return on all its projects of 12%. Year 3-year depreciation allowances 33.33% 44.45 14.81 7.41