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Free cash flows in years 2012-2014 Hermosa Components: Revenue Growth, Sales Price, and Currency Risk Scenario. Hemosa Beach Components, Inc, of Caifornia exports 26 ,

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Hermosa Components: Revenue Growth, Sales Price, and Currency Risk Scenario. Hemosa Beach Components, Inc, of Caifornia exports 26 , ooo sets of low-density light bubs per year to Avgentina under an import license that expives in five years, In Argentina. the bults ate sold for the Aegenine peso equivalent of 560.00 per set. Drect manulacturing cosits in the United States and shipping together amount to $40 por sec. The marcet for this type of bub in Argentina is stable. nether growing nor shirinking. and Hermosa holds the major portien of the market. five yours and then sel the bulding and equbment to Mpgentine imvestors at net book value at the tme of sale plus the value of ary net working captal. (Net workng capital is the amount of currert invecimenis in US dolar terma. - Investment Hermosis antcipated cash ovfay in US dollan in 2012 would be as follows: As imevtment ouflays will be mode in 2012 , and all operating cash fows will ocour at the end of years 2013 through 2017 atso be repatrubed to the Unled States, as may the remaing net book value of the plant. - Sales Price of Bulbe. Locally manulactured balbs will be sold for the Argentine peso equivalent of 500 . 00 per set. Calaulate the free cash flows in years 2012 erough 2014 trom fle projects viewpoint below (Round is the nearest whole number) Data table \begin{tabular}{|lr|} \hline Building and equipment & \\ Net working capital & 1,400,000 \\ \hline Total investment & $2,200,000 \\ \hline \end{tabular}

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