You are evaluating a new product. You are projecting sales of $500,000 and cost of goods sold of $300,000 from the new product in year 3. You will be depreciating a $100,000 machine over 5 years using straight-line depreciation to a zero book value. Your tax rate is 35%. Finally, you expect the net working capital will increase by $10,000 in year 3. What is the free cash flow of the project for year 3?

You are evaluating a new product. You are projecting sales of $500,000 and cost of goods sold of $300,000 from the new product in year 3 . You will be depreciating a $100,000 machine over 5 years using straight-line depreciation to a zero book value. Your tax rate is 35%. Finally, you expect the net working capital will increase by $10,000 in year 3 . What is the free cash flow of the project for year 3