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You are planning on producing a new product that will generate $750,000 in incremental earnings each year. To do that, you estimate that you will

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You are planning on producing a new product that will generate $750,000 in incremental earnings each year. To do that, you estimate that you will require an additional $980,000 in inventory before production and operation. You also promise to pay for 50% of the additional inventory later. It will also cost you about $1,500,000 to purchase new parts to expand your machine. Finally, you will also need to spend $50,000 in testing the new expanded machine. If your tax rate is 27%, what are your free cash flows in year 0

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