using the following information,

Beta	1.25
Expected Return on Market	13.75%
Treasury Bond Rate	2.3%
Flotation Cost of Equity	3%
Book Value of Debt	$3,000,000,000
Market Value of Debt	$3,500,000,000
Book Value of Equity	$5,500,000,000
Market Value of Equity	$4,250,000,000
Bond Information	Coupon rate = 6%, maturity = 20 years, maturity value =$1,000 and the current price is 982.25. Assume interest is paid semiannually.

Martin Mining is considering a new investment that will last for six years. The project has projected sales of $2,557,000. Variable costs are 62 percent of sales and fixed costs are $90,000; depreciation $191,000 per year. Prepare a pro forma income statement assuming a tax rate of 25 percent. Assume the project costs $1,500,000. What is projected net income? What is operating cash flow?