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You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $ 5 . 2 million and

You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $5.2 million and cost of goods sold of $3.12 million. You will be depreciating a $1.2 million machine for 5 years using straight-line depreciation. Your tax rate is 25%.Finally, you expect net 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 year3? What is your pro forma free cash flow for year3?

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