Project cash flows for a marketing campaign Barilla Group, a manufacturer of pasta and other similar food products, has maintained stable sales and profits over the last few years. Although the market for pasta and similar products has been expanding by 5% per year, Barilla has been unsuccessful in sharing this growth. To increase its sales, the firm is considering an aggressive marketing campaign that centers on regularly running ads in all relevant trade websites and on television during prime time. The campaign is expected to require an annual tax deductible expenditure of €500,000 over the next three years. Sales revenue, as shown in the accompanying income statement for 2021, totaled €15,500,000. If the proposed marketing campaign is not initiated, sales are expected to remain the same in each of the next three years, 2021 through 2023. With the marketing campaign, sales are expected to rise to the levels shown in the accompanying table for each of the next three years; cost of goods sold is expected to remain at75% of sales; general and administrative costs are expected to remain at 10% of sales; and annual depreciation expense is expected to remain at €1,000,000. Assuming a 24% tax rate, find the project cash flows over the next three years associated with the proposed marketing campaign

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Barilla Income Statement for the Year Ended December 31, 2021 Sales revenue Less: Cost of goods sold (75%) Gross profits Less: Operating expenses General and administrative expense (10%) Depreciation expense Total operating expense Earnings before interest and taxes Less: Taxes (rate = 24%) Net operating profit after taxes 15,500,000 11,625,000 3,875,000.00 1,550,000.00 1,000,000 2,550,000.00 1,325,000.00 318,000 1007,000,00 Barilla Group Sales forecast Year 2021 2022 2023 Sales revenue 18,000,000 18,500,000 20,500,000