You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $5 million and cost of goods sold of $3 million. You will be depreciating a $1million machine for 5 years using straight-line depreciation. Your tax rate is 35%. Finally, you expect working capital to increase from $200 comma 000 in year 2 to $300 comma 000 in year 3. What are your pro forma earnings for year 3? What are your pro forma free cash flows for year 3?

Pro Forma: Year 3:

Sales ?

COGS?

Depreciation?

EBIT ?

TAX?

Depreicaition?

Net working capital ?

free cash flow?