A company plans to bring a new product to markets. Before that it needs 8.8 M $ for product development investment. At this stage, the sales volume is estimated at 100,000 pieces and the sales price is 200 $ / piece. Sales revenues are expected to grow by 10% annually. The product is estimated to be sold and manufactured for 3 years. $ 2.8 million must be invested annually in marketing. When determining the manufacturing method, an initial investment of $ 6.6 million in equipment purchased from the contract manufacturer. It is amortized on a straight- line basis over 3 years in profit or loss. Corporate income tax rate 20%. Thanks to the arrangement with the contract manufacturer, the company has no inventories, but the valuation of trade receivables includes 16% of sales revenue and trade payables 13% of costs corresponding to sold deliverables. What is the free cash flow for years 0, 1, 2, 3 and 4? What is the net working capital committed at the end of year 1 and end of year 2? What is the increase in net working capital in year 2 and for year 3? What is the year 3 operating profit (EBIT)? A company plans to bring a new product to markets. Before that it needs 8.8 M $ for product development investment. At this stage, the sales volume is estimated at 100,000 pieces and the sales price is 200 $ / piece. Sales revenues are expected to grow by 10% annually. The product is estimated to be sold and manufactured for 3 years. $ 2.8 million must be invested annually in marketing. When determining the manufacturing method, an initial investment of $ 6.6 million in equipment purchased from the contract manufacturer. It is amortized on a straight- line basis over 3 years in profit or loss. Corporate income tax rate 20%. Thanks to the arrangement with the contract manufacturer, the company has no inventories, but the valuation of trade receivables includes 16% of sales revenue and trade payables 13% of costs corresponding to sold deliverables. What is the free cash flow for years 0, 1, 2, 3 and 4? What is the net working capital committed at the end of year 1 and end of year 2? What is the increase in net working capital in year 2 and for year 3? What is the year 3 operating profit (EBIT)