Question: Pleae use formulas, not excel You are evaluating a new product. In year 3 of your analysis, you are projecting sales of $6 million and
You are evaluating a new product. In year 3 of your analysis, you are projecting sales of $6 million and cost of goods sold of $3 million. You will be depreciating a $2 million machine for 5 years using straight-line depreciation. Your tax rate is 38%. Finally, you expect working capital to increase from $500,000 in year 2 to $695,000 in year 3. What are your forecasted earnings for year 3? What are your forecasted cash flows for years 3
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