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Can someone help with years 0 to 10 please. You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre
Can someone help with years 0 to 10 please.
You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and complains, "We owe these consultants $1.6 million for this report, and I am not sure their analysis makes sense. Before we spend the 519 million on new equipment needed for this project, look it over and give me your opinion. You open the report and find the following estimates (in Millions of dollars); 1 2 9 10 Sales revenue 26.000 26.000 26.000 20.000 - Cost of goods sold 15.000 15,600 15.000 15.600 Gross profit 10.400 10.400 10.400 10.400 - General, sales, and administrative expenses 1.520 1.520 1.520 1.520 -Depreciation 1.900 1.000 1.900 1.900 = Net operating income 6.980 6,980 6.980 6.980 Income tax 2.443 2.443 2 443 2.443 a. Given the available information, what are the free cash flows in years through 10 that should be used to evaluate the proposed project? The free cash flow for year is $ million (Round to three decimal places, and enter a decrease as a negative number) Step by Step Solution
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