Question: 16) please highlight the answer and type it You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma

16) please highlight the answer and type it You are evaluating

16) please highlight the answer and type it

You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $4.2 million and cost of goods sold of $2.52 million. You will be depreciating a $1.5 million machine for 5 years using straight-line depreciation. Your tax rate is 33%. Finally. you expect working capital to increase from $190,000 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

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