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how would this repeated sunk cost affect my free cash flow calculation? since we are calculating the value of the project anyways would it not

how would this repeated sunk cost affect my free cash flow calculation? since we are calculating the value of the project anyways would it not affect my calculation at all as its already included in my net income? image text in transcribed
First, you note that the consultants have not factored in the fact that the project will require $10 million in working capital upfront (year 0), which will be fully recovered in year 10. Next, you see they have attributed $2 million of selling, general and administrative expenses to the project but you know that $1 million of this amount is overhead that will be incurred even if the project is not acceptedr Finally, you know that accounting earnings are not the right thing to focus on! a. Given the available information, what are the free cash flows in years 0 through 10 that should be used to evaluate the proposed project

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