The Numbers:

Satcom$$s fiscal year ends December $31.$ The Satcom Division predicts it will generate $$2\mathrm{.}0$ Billion in sales and $$450$ million in profits in FY $2013.$ The divisional cost of capital is $14\%$ and its average tax rate is $35\%.$ The cost of sales for the Satcom Division has historically run about $45\%.$

Planning to add additional capacity began in $2012.$ The corporate economist provided a forecast of the incremental sales and the expected cost of sales for Fiscal Years $2013$ through $2019.$ The additional new equipment will cost $$750$ Million $($installed$)$ and will require a $$75$ Million investment in working capital $($primarily cash$)$ and technical support contracts. We expect to recoup $$25$ million of the $$75$ million at the end of year $2019.($Working Capital $$ Cash$).$ What is the capital $\%$ when computing the after tax cash flow