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Sweetheart Enterprises is deciding whether to expand its production facilities. Although long-term cash flows are difficult to estimate, management has produced the following projections for
Sweetheart Enterprises is deciding whether to expand its production facilities. Although long-term cash flows are difficult to estimate, management has produced the following projections for the first two years (in millions of dollars). Olin's tax rate is 30%.
Year 1 | Year 2 | |
Revenues | 100 | 120 |
Cost of Sales | 44 | 60 |
Depreciation | 20 | 20 |
Capital Expenditures | 26 | 25 |
Net Working Capital (Level) | 20 | 28 |
What is the projected free cash flow for this project for year 2? (in millions of dollars, rounded to the nearest million)
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