Question: DRK, Inc. is evaluating a proposal to expand its current distribution facilities. Management has project use project will produce $300,000 in year one with a

 DRK, Inc. is evaluating a proposal to expand its current distribution

DRK, Inc. is evaluating a proposal to expand its current distribution facilities. Management has project use project will produce $300,000 in year one with a 10% increase each year through year 4. The capital expenditures are $140,000 and will be deprecated strain line over its four-year life to a residual value of $0. The cost of goods sold is estimated at 50% of safes. Net working capital is expected to increase by $40 each year. The tax rate s 40%. Complete the table below and compute the FCF for each year

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