Part $2.$ Capital Budgeting $(25$ marks$)$ Consider the following information.

In order to satisfy a sharp increase in demand due to the end of the pandemic, LLC is evaluating investing in one of two major projects; these projects will be called Project A and Project B$.$ In order to mitigate risk, LLC has asked Rachel Consulting Limited to conduct some market research. Rachel Consulting is being paid $$2\mathrm{.}5$m as a fixed fee for her expert consulting services.

Project A has an initial outlay of $$45$ million and Project B has an initial outlay of $$60$ million.

Project A will generate additional revenues of $$25$ million starting in year $1$ and ending in year $10.$ It will also have additional net working capital needs of $$17$ million immediately. This sum will be recovered at the end of the project.

Project B will generate additional revenues of $35$ million starting in year $1$ and ending in year $10.$ It will also have additional net working capital needs of $$19$ million immediately. This sum will be recovered at the end of the project.

The cash operating costs of both projects will be $20\%$ off he revenues from years $\mathrm{.}1$ to $\mathrm{.}10$ Both projects will be depreciated on a straight line basis over ten years to zero book value LLC has estimated that some assets involved in he upgrades can be sold at he end off ear $\mathrm{.}10$ respectively for$$25$million $($ProjectA$)$and$$35$million$($ProjectB$).$The tax rateis$30\%.$ All cash flows are annual and occur at the end of the year. The cost of capital for both projects is $11\%$ based on the overall risk of the LLC$.$

Compute the free cash flows of the projects