• The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.)
• The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost.
• The annual EBIT for this new project will be 18% of the project's cost.
• The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project.
• Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project
• Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project.

• Tesla Balance Sheet

• Assets	Dec. 31, 2019	Dec. 31, 2019
  Current assets
  csh and cash equivalent	6,268	3,686
  restricted cash	246	193
  account receivable	1,324	949
  inventory	3,532	3,113
  prepaid expenses and other assets	713	366
  total current asset	12,103	8,307
  operating lease vehicle, net	2,447	2,090
  Solar energy systems, net	6,138	6,271
  property, plant and equipment net	10,396	11,330

• Estimated life = 12 years