Persimmon, Inc. is considering a 3 year project. Your boss said to you "We owe these consultants $1.2 million for this report. Before we spend $15 million on new equipment needed for this project, look it over and give me your opinion. Here are the report's estimates (in millions of dollars): [BE SURE TO SCROLL DOWN TO SEE THE ENTIRE QUESTION.] 1 2 3 Sales revenue 25.0 25.0 25.0 - Cost of goods sold 13.0 13.0 13.0 Gross profit 12.0 12.0 12.0 -Selling, general and administrative expenses 3.0 3.0 3.0 -Depreciation 5.0 5.0 5.0 Net operating income 4.0 4.0 4.0 - Income tax 1.0 1.0 Net Income 3.0 3.0 3.0 1.0 Everything that the consultants have calculated is correct, as far as it goes. This is the incremental net income for this project. Do not change the use of straight line depreciation over three years (this is a simplified problem). Your job is to determine if there are any further adjustments we need to get the correct incremental FCFs to used in calculating the NPV. This project will require $28 million in working capital upfront (year 0), which will be fully recovered in the last year of the project (year 3). What are the correct free cash flows (FCFS) for evaluating this project? (a) Start from the correct Net Income which has already been given (do NOT recopy the calculations before NI). (b) Make any additional adjustments needed for each of the periods, in order to get the final, complete set of FCFs. Show each of these adjustments, properly labelled. (c) Please do not change the units - I'd like the answers in millions of dollars (as shown), not in dollars. (d) Do not calculate the NPV just give the final FCF stream