the contract? $($Note: Assume that the equipment is put into use in year $1.)$

Calculate the free cash flows below for years $0$ through $2$: $($Round to the nearest dollar.$)$

Year $0$

Sales

Cost of Goods Sold

Gross Profit

Annual Cost

Depreciation

EBIT

Tax

Incremental Earnings

Depreciation

Changes in NWC

Opportunity Cost

Capital Expenditures

Year $1$