What are pro forma free cash flows for year? 3

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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. You will be depreciating a ?$1 million machine for 5 years using? straight-line depreciation. Your tax rate is 35?%. ?Finally, you expect working capital to increase from ?$200,000 in year 2 to ?$300,000 in year 3. What are your pro forma earnings for year? 3? What are your pro forma free cash flows for year? 3?

Reference no: EM131950990

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