what are the free cashflows from year 0 to 10?

Do Homework - Ora Manov - Microsoft Edge 0 X https://www.mathxl.com/Student/PlayerHomework.aspx?homeworkld=527492959&questionld=4&flushed=false&cld=5473916¢erwin=ye FIN 2200 - SS 2019 A02 Ora Manov & | 7/24/19 9:31 PM Homework: Assignment 7 Save Score: 0.09 of 1 pt 4 of 7 (6 complete) HW Score: 49.87%, 3.49 of 7 pts x Problem 9-7a i Question Help = Net operating income 7.2000 7.2000 7.2000 7.2000 - Income tax 2.52 2.52 2.52 2.52 = Net income 4.680 4.680 4.680 4.680 All of the estimates in the report seem correct. You note that the consultants used straight-line depreciation for the new equipment that will be purchased today (year 0), which is what the accounting department recommended for financial reporting purposes. Canada Revenue Agency allows a CCA rate of 30% on the equipment for tax purposes. The report concludes that because the project will increase earnings by $4.680 million per year for ten years, the project is worth $46.8 million. You think back to your halcyon days in finance class and realize there is more work to be done! First, you note that the consultants have not factored in the fact that the project will require $7 million in working capital upfront (year 0), which will be fully recovered in year 10. Next, you see they have attributed $1.6 million of selling, general and administrative expenses to the project, but you know that $0.8 million of this amount is overhead that will be incurred even if the project s not accepted. Finally, you know that accounting earnings are not the right thing to focus on! a. Given the available information, what are the free cash flows in years 0 through 10 that should be used to evaluate the proposed project? a. Given the available information, what are the free cash flows in years 0 through 10 that should be used to evaluate the proposed project? The free cash flow for year 0 = $ - 27 million. (Round to the nearest million). The free cash flow for year 1 is $ | million. (Round to three decimal places). Enter your answer in the answer box and then click Check Answer. ? parts 9 remaining Clear All Final Check