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Your team is evaluating project which, if approved, will generate sales in year 2022. Your colleague estimated the following financials for you. Due to the

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Your team is evaluating project which, if approved, will generate sales in year 2022. Your colleague estimated the following financials for you. Due to the tightening of lending standards caused by the Covid 19. you are told by your colleague that the capital expenditure (which will be financed by a local bank) has to spread over a period of three years. That is the annual capital expanditure 10.000 for the first three years (Year 2021 to Year 2023. le. 10.000 for Year 2021, 10.000 for 2022. and 10.000 for 2023) Your estimate of the free cash flow (FC) In Year 2022 13 of the FCF is negative, you must include the negative sign. Note that Instruction Round your numerical answer to the nearest Integer. Dont type the comma sign Year 2022 Sales 5,000 Cost of Goods Sold 2,000 Selling general and administrative expense 600 Depreciation 400 Earnings Before Interest and Taxes 2,000 Interest Expense Earnings Before Taxes 1,800 Taxes (tax rate - 20%) 360 Net Income 1,440 200 Net working capital components Inventory Accounts Receivable Accounts Payable Year 2021 Year 2022 800 1,000 0 1,600 0 800

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