Data table Building and equipment Net working capital Total investment $1,100,000 1,000,000 $2,100,000 Data table Materials purchased in Argentina (U.S. dollar equivalent) Materials imported from Hermosa Beach-USA Total variable costs $20 per set 10 per set $30 per set Calculate the free cash flows in years 2012 through 2014 from the project's viewpoint below: (Round to the nearest whole number.) Project Cash Flows in Argentina: Project Viewpoint PPP expected exchange rate (pesos/$) Annual units sold (sets) Sales price in Argentina per set (in $) Sales price in Argentina per set (in pesos) Sales revenue Less direct manufacturing and shipping costs Less cost of U.S. components at $10/set Gross profit Less depreciation Pre-tax profit Less 40% Argentina taxes 2012 2013 3.5000 27,000 $ 60.00 2014 Less 40% Argentina taxes Net income Add back depreciation Annual project cash flow Sales value in year 5 (multiple of earnings) Initial investment Free cash flow for discounting Ps Ps Project Cash Flows in Argentina: Project Viewpoint 2012 3.5000 2013 2014 PPP expected exchange rate (pesos/$) Annual units sold (sets) Sales price in Argentina per set (in $) 27,000 $ 60.00 Sales price in Argentina per set (in pesos) Ps Sales revenue Less direct manufacturing and shipping costs Less cost of U.S. components at $10/set Gross profit Less depreciation Pre-tax profit Less 42% Argentina taxes Net income Add back depreciation Annual project cash flow Sales value in year 5 (multiple of earnings) Initial investment Free cash flow for discounting Ps Ps Ps Ps Ps Ps Project Cash Flows in Argentina: Project Viewpoint 2012 2013 2014 PPP expected exchange rate (pesos/$) 3.5000 Annual units sold (sets) 27,000 Sales price in Argentina per set (in $) $ 60.00 $ 63.60 Sales price in Argentina per set (in pesos) Ps Sales revenue Less direct manufacturing and shipping costs Less cost of U.S. components at $10/set Gross profit Less depreciation Pre-tax profit Less 42% Argentina taxes Net income Ps Ps Ps S Ps Add back depreciation Annual project cash flow Ps Sales value in year 5 (multiple of earnings) Initial investment Free cash flow for discounting Ps