How to calculate projected cash flow over a 5-year period.

-First year sales are projected to be $15 million with a 10% increase in revenue each year over the next 5 years.

-In the prior two years your company has spent $1 million on the development of this project. To finish the development and create the manufacturing infrastructure to produce it, It is estimated to need another $20 million in equipment purchases. This equipment has a 5-year life.

- Cost of goods sold will be 45% of revenue.

- Incremental SG&A will be 15% of revenue.

- Working capital requirements will be 8% of revenue.

- one-time advertising budget of $2.5 million, which will be spent in the first year of sales.

-You have the ability to access up to $30 million dollars from your financiers.

-Your creditors are willing to loan you money at a 6% interest rate.

-Your investors expect a return of 12% on their equity.

-The company's weighted average cost of capital is 9.45%.

-On all projects, assume a 30% tax rate on income.