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You are a managor as Persimmon Production, which is considering adding a new product line. Your boss said to you We already owe those consultants

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You are a managor as Persimmon Production, which is considering adding a new product line. Your boss said to you We already owe those consultants 51.2 milion, and all they estimated is Nat Inoome. Belore we spend \$48 million on new equipment for this project. look the report over and give me your opinion." Here are the report's estimates (in malions of doilarsi note that the questior is continued below, so you need to screll down to see it all: : Everything that the consulants have calculated is correct, as far as it goes. The project will require 526 milion in working capital upfront (year of which will be fully recovered in the last year of the project (year 3). Unfortunately, some of the benefits of this new product line would be from customers switching from your existing products. This erosion or cannibalization would have a net (after tax) effect of $2. milison per year bst from other products, over the three years you would be producing the new product. Last, much management time has been spent trying to analyze whether or not this expansion is desirable, and you estimate that the cpporturity cost of the analysis that has already been done hav been around $0.3 milion: What are the coerect free cash flows (FCFs) to be used when evaluating this project? Report them in millions of dollars, not in dollars. Note that the answer is NOT the NPV, but the incremental FCFs needed for each relevant period. [Note. Please show your work for the possiblity of partial credit. Briefly show your calculations but do not explain them except to label the numbers you give. By labels, I mean column and row headings such as "Depreciation" or "Year 2), and make it clear whether you are adding or subtracting ro prefer that you keep the columnirow formatting of the earler calculatons. Do NOT repeat the numbers betore Net Income - just show the calculations after that, to got the final FCFs for each period.] The first relevant period's FCF is: The second relevant period's FCF is: The third relevant period's FCF is: The fourth relevant period's FCF (if any) is

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