Intro Beats wants to build a new factory to produce its headphones. It will cost $120 million initially to build the factory over the course of 12 months, which will be worthless after 10 years. The factory will be depreciated linearly to $0 over 10 years. Beats already owns the land on which the factory will be built. The land is currently worth $10 million and was purchased for $2 million eight years ago. After completion of the factory at the end of year 1, Beats expects earnings before interest and taxes (EBIT) of $34 million each year for 10 years. The company also has to add inventory (components) worth $5 million just before operation starts at the end of the first year. Beat's marginal tax rate is 21% and the appropriate cost of capital for this project is 6%. IBAttempt 1/3 for 10 pts. Part 1 What is capital expenditure in year 0, i.e., at the start of the project (in $ million)? 0+ decimals Submit Part 2 1B Attempt 1/3 for 10 pts. What is the free cash flow in year 0 (in $ million)? 0+ decimals Part 3 Attempt 1/3 for 10 pts. What is the free cash flow in year 1 (in $ million)? 0+ decimals Submit Part 4 | Attempt 1/3 for 10 pts. What is the annual depreciation in year 2 (in $ million)? 0+ decimals Submit Part 5 IB | Attempt 1/3 for 10 pts. What is the free cash flow in year 2 (in $ million)? 1+ decimals Submit Part 6 B Attempt 1/3 for 10 pts. What is the free cash flow in year 11 (in $ million)? 1+ decimals Submit Attempt 1/3 for 10 pts. Part 7 What is the NPV of this project (in $ million)? 0+ decimals Submit Intro Beats wants to build a new factory to produce its headphones. It will cost $120 million initially to build the factory over the course of 12 months, which will be worthless after 10 years. The factory will be depreciated linearly to $0 over 10 years. Beats already owns the land on which the factory will be built. The land is currently worth $10 million and was purchased for $2 million eight years ago. After completion of the factory at the end of year 1, Beats expects earnings before interest and taxes (EBIT) of $34 million each year for 10 years. The company also has to add inventory (components) worth $5 million just before operation starts at the end of the first year. Beat's marginal tax rate is 21% and the appropriate cost of capital for this project is 6%. IBAttempt 1/3 for 10 pts. Part 1 What is capital expenditure in year 0, i.e., at the start of the project (in $ million)? 0+ decimals Submit Part 2 1B Attempt 1/3 for 10 pts. What is the free cash flow in year 0 (in $ million)? 0+ decimals Part 3 Attempt 1/3 for 10 pts. What is the free cash flow in year 1 (in $ million)? 0+ decimals Submit Part 4 | Attempt 1/3 for 10 pts. What is the annual depreciation in year 2 (in $ million)? 0+ decimals Submit Part 5 IB | Attempt 1/3 for 10 pts. What is the free cash flow in year 2 (in $ million)? 1+ decimals Submit Part 6 B Attempt 1/3 for 10 pts. What is the free cash flow in year 11 (in $ million)? 1+ decimals Submit Attempt 1/3 for 10 pts. Part 7 What is the NPV of this project (in $ million)? 0+ decimals Submit