Given the following information, answer questions 18 to 20 ALD Corp. is considering a project that requires a $40,000 initial cost for a new machine that will be depreciated straight line to a salvage value of 0 on a 8-year schedule. The project will require a one-time increase in the level of net working.capital of $10,000. The project will generate an additional $9,000 in revenues and $2,000 in operating expenses each year. The project will end at the end of year 2, at which time the machinery is expected to be sold for $30,000, and the working capital is expected to be 100% recovered. ALD's tax rate is 40%. In a discounted cash flow analysis of this project: 19) What would be the projected year 2 free cash flow? O $ 37,800 O $ 44,400 O $ 46,200 O $ 45,600 Previous Next >