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CGX Transmitters is developing a 2nd generation optical transmitter. The project will last for three years, at that time work will begin on 3rd generation

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CGX Transmitters is developing a 2nd generation optical transmitter. The project will last for three years, at that time work will begin on 3rd generation optical transmitters. CGX always uses straight line depreciation. The equipment will cost $12.5 M and at the end of three years, the salvage value of the equipment will be $3.5 M. Sales are expected to be $20 M in year 1 and grow at 35% in years 2 and 3. Fixed costs arc $5 M/year. COGS will be 60% of sales. Net working capital requirements arc $1.5 M, 1.7 M, and 1.8 M in years 1-3 respectively. The company's tax rate is 25%. The discount rate is 13%. Fill in any missing information you need to complete the capital budget (values denoted in millions)

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