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The Numbers: Satcom s fiscal year ends December 3 1 . The Satcom Division predicts it will generate $ 2 . 0 Billion in sales

The Numbers:
Satcoms fiscal year ends December 31. The Satcom Division predicts it will generate $2.0 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 control % when computing the after tax cash flow?

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