What are the annual cash flow from operations in years 1,2 and 3 ?

Compute the after tax salvage value in year 3?

What are the free cash flows in years 0,1,2, and 3 (also consider NWC) ?

Question 17 4pts Use the following information to answers questions 17 to 26. (Long Answer/Essay - primarily Chapter 13 but includes concept from many chapters) You are the CFO of Micro Spinoff Inc. The company has 3,000,000 shares of common stock outstanding ata market price of $50 a share. Micro Spinoff just paid an annual dividend in the amount of $3.12 per share. The dividend growth rate is 5.8 percent annually. Micro Spinoff also has 70,000 bonds outstanding with a face value of $1.000 per bond that are selling at 115.372 percent of par. The bonds have a 12 percent coupon pay interest semiannually, and have 15 years to maturity. Finally the firm has 400,000 shares of preferred stock outstanding at a market price of $58.48 a share. Preferred stock padded of 6.67 percent on its par value of $75.00. The firm is considering a three-year expansion oject (same operations as the existing projects of the firm that requires an initia investment in a machine of $200,000. The increase in Net Working Capital (WC) at time is $10,000 that will be reduced to normal levels at the end of the project at time 3. The machine has a life of as and will be depreciated to using method. The Eamings Before Interest, Taxes. Depreciation and Anotation EBITDA in the first year is $70.000 and the w ro at 6 percent a year. At the end of the project (year 31. the machine can be sold for $10.000. The firm's tax rate is 21 percent