please help with creating an after-tax cash flow timeline. Feedback for the problem is in blue. Thank you for your help.

Details of McCormick Plant Proposal As you know from Project 4, McCormick & Company is considering a project that requires an initial investment of $350 million to build a new plant and purchase equipment. The investment will be depreciated as a modified 7 9. accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the 10 company's land, which has a current, after-tax market value of $14 million. 11 12 You have been asked to refine your work to include the correct tax impact of depreciation, and the cash flow 13 impact of working capital on the capital budget evaluation. 14 The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The correct depreciation table is included at the right. 15 Year The company will need to finance some of the cash to fund $17 million in receivables and $14 million in Inventory 17 starting at year zero. The company expects vendors to give free credit on purchases of $15 million (accounts Payable). Add the net cash outflow for working capital to the cash outflow for the plant, equipment and land in year zero. The $17 million for receivables and the $14 million for Inventory are cash outflows. The $15 million for 16 18 19 receivables is a cash inflow. 20 21 Assume that this net working capital is recovered as a cash inslow in year 21. 22 6. 7. 23 The company still estimates revenues and expenses the same as it did in Project 4. Capital Budgeting 8. See Table 2 at the right. Instructions Cost of Capital O Type here to search 43 00 receivables is a cash inflow. Assume that this net working capital is recovered as a cash inflow in year 21. 2 3. The company still estimates revenues and expenses the same as it did in Project 4. See Table 2 at the right. 25 The company now estimates that it can sell the land in year 21 for $40 million. It will also recover the cash spent 26 on working capital in year 21. 27 Use the WACC that you calculated in the Cost of Capital tah. 28 29 30 O Cost of Capital Capital Budgeting Instructions Type here to search 43 annual depreciation 2. Create an after-tax cash flow timeline. In any case a cash flow time line has years from zero to 21 and a correcponding cash flow. Year zero has cash flows from the investment in the plant and equipment, the land and the working capital. Year 21 has the after tax sale value of the land and the recovery of the working capital. Instructions Cost of Capital Capital Budgeting Type here to search 43 F10 F8 F7 F6 F5 F4 F1 F3 F2 & DI Details of McCormick Plant Proposal As you know from Project 4, McCormick & Company is considering a project that requires an initial investment of $350 million to build a new plant and purchase equipment. The investment will be depreciated as a modified 7 9. accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the 10 company's land, which has a current, after-tax market value of $14 million. 11 12 You have been asked to refine your work to include the correct tax impact of depreciation, and the cash flow 13 impact of working capital on the capital budget evaluation. 14 The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The correct depreciation table is included at the right. 15 Year The company will need to finance some of the cash to fund $17 million in receivables and $14 million in Inventory 17 starting at year zero. The company expects vendors to give free credit on purchases of $15 million (accounts Payable). Add the net cash outflow for working capital to the cash outflow for the plant, equipment and land in year zero. The $17 million for receivables and the $14 million for Inventory are cash outflows. The $15 million for 16 18 19 receivables is a cash inflow. 20 21 Assume that this net working capital is recovered as a cash inslow in year 21. 22 6. 7. 23 The company still estimates revenues and expenses the same as it did in Project 4. Capital Budgeting 8. See Table 2 at the right. Instructions Cost of Capital O Type here to search 43 00 receivables is a cash inflow. Assume that this net working capital is recovered as a cash inflow in year 21. 2 3. The company still estimates revenues and expenses the same as it did in Project 4. See Table 2 at the right. 25 The company now estimates that it can sell the land in year 21 for $40 million. It will also recover the cash spent 26 on working capital in year 21. 27 Use the WACC that you calculated in the Cost of Capital tah. 28 29 30 O Cost of Capital Capital Budgeting Instructions Type here to search 43 annual depreciation 2. Create an after-tax cash flow timeline. In any case a cash flow time line has years from zero to 21 and a correcponding cash flow. Year zero has cash flows from the investment in the plant and equipment, the land and the working capital. Year 21 has the after tax sale value of the land and the recovery of the working capital. Instructions Cost of Capital Capital Budgeting Type here to search 43 F10 F8 F7 F6 F5 F4 F1 F3 F2 & DI