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Wall, Corp. (Wall) is the leading manufacturer of drywall in the United States. Wall is trying to predict cash flow for the next year. Depreciation

Wall, Corp. (Wall) is the leading manufacturer of drywall in the United States. Wall is trying to predict cash flow for the next year. Depreciation of $1 million is included in cost of goods sold (COGS). There is no depreciation expense as part of selling, general and administration expense (SG&A). Wall is not forecasting any capital expenditures or change in net working capital. Wall's tax rate is 20%. Below are Wall's estimates in millions:

Estimate 1 Probability Estimate 2 Probability
Sales $19.00 30% $16.50 70%
COGS $13.50 60% $14.00 40%
SG&A $3.00 50% $4.00 50%

Based on the above estimates, what will be Wall's aftertax cash flow for next year?

Group of answer choices

$0.04

$0.05

$17.25

$1.04

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