Question: Question 33 3 pts Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following

Question 33 3 pts Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions). 2 Year Revenues Operating Expense Depreciation Increase in working capital Capital expenditures Marginal corporate tax rate 1 1200 450 240 60 300 21% 1400 525 280 70 350 21% The free cash flow from the Shepard Industries project in year one is closest to: $300 million. -$5 million. $643 million $403 million $390 million. $43 millon $343 million $283 million. $210 million
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