Johnson Inc. finally decided to undertake an expansion project which involved $2 million of R&D expenses in the previous two years before the project. The necessary equipment could be purchased for $9 million, and the project would also require an initial \$3 million investment in net operating working capital and \$0.5 million for installation and testing. (a) What is the project's initial investment outlay? (4 marks) The firm also wants to estimate the first year operating free cash flow (at t=1 ) for the project. The following information is collected: installation and testing. (a) What is the project's initial investment outlay? (4 marks) The firm also wants to estimate the first year operating free cash flow (at t=1 ) for the project. The following information is collected: (b) What is the project's free cash flow for the first year if the firm's tax rate is 28% ? (6 marks)