John is a sell-side analyst with Royal Guard Securities. One of the companies she follows, MDIP Pharma, is evaluating a new local distribution center. The financial estimates for the project are as follows:

Fixed capital outlay is?1.80 billion euros. The initial investment in networking capital is 0.40 billion euros. Project life is 10 years. Straight-line depreciation is over a six-year period with zero salvage value. Additional annual revenues are 0.10 billion euros. The Capital equipment is sold for 0.50 billion euros in 10 years. Annual cash operating expenses are reduced by 0.30 billion euros. The tax rate is 35 percent and the required rate of return is 12 percent. A) What should be John?s estimate of initial outlay? B) What should be John?s estimate of after-tax operating cash flow for the Years 1-6 and 7-10, respectively? C) What should be John?s estimate of terminal year non-operating cash flow?