Question $20$

$1$ pts

Webmatics approved a $6-$year project that requires an initial investment of $$48$ million for the equipment and working capital of $$5$ million. The project will generate Sales of $$34$ million, Operating Expenses of $$2$ million and Depreciation and Amortization charges of $$8$ million per year during the life of the project. The firm uses straight$-$line depreciation. At the end of the project, Webmatics sets the book value to zero and the market value of the equipment to $$4$ million. The marginal tax rate for Webmatics is $10\%.$ What is the Free Cash Flow of the project in year $5?$

$$27\mathrm{.}82$ million

$$29\mathrm{.}60$ million

$$21\mathrm{.}60$ million

$$31\mathrm{.}97$ million

$$27\mathrm{.}23$ million