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Question 21 2.5 pts You are evaluating a product for your company SOFT, Inc. You estimate the sales to be $ 1,000,000 in year 1:

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Question 21 2.5 pts You are evaluating a product for your company SOFT, Inc. You estimate the sales to be $ 1,000,000 in year 1: $1,500,000 in year 2; and $2,000,000 units in year 3. The project has a 3-year life. Variable costs amount to 60% of sales and fixed costs are $ 200,000 per year. The project requires an initial investment of $300,000 in assets which will be depreciated straight-line to zero over the 3-year project life. The actual market value of these assets at the end of year 3 is expected to be $60,000. NWC requirements at the beginning of each year will be approximately 10% of the projected sales during the coming year. The tax rate is 20%. What will the free cash flow for this project be at t-o? 0 $ 300.000 -$ 200,000 0 $ 100,000 0 $ 400,000

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