emine 33 minutes, 15 seconds. weston Completion Status Use the following information to answer Questions 14 - 17. Umbrella Inc. is considering expanding one of its production facilities to research a new type of virus, which will hopefully not result in another zombie outbreak. The project requires a $6,000,000 initial capital investment in an equipment which will be equally depreciated over its 3 year life. Salvage value of the equipment is so Incrementat sales are expected to be 55,300,000 annually for the 3 year period with cash expenses equal to 40% of sales. Umbrella would also have to commit to initial net operating working capital of $3,000,000. Umbrella is subject to a 30% marginal tax rate, and requires a 12% rate of return for projects of this risk level. 14. Free Cash Flow for Year Ols: OA-S 13,000,000 OB$ 6,000,000 OCS 18,000,000 O 0-5 10,000,000 OL-S 9,000,000 QUESTION 15 Free Cash Flow for Year 1 is: OAS 6,800,470 OB. $ 1,800,231 OCS 2,826,000 OD.S 4,756,384 O E S 5,800,600 save all answers. QUESTION 16 Free Cash Flow for Year 3 is : OAS 6,526,000 OBS 5,826,000 OCS 1,529,000 ODS 9,340,844 OE $ 2,826,000