Question $7$

$1$ pts

The Interamerica approved a $4-$year project that requires an initial investment of $$48$ million for the equipment and working capital of $$7$ million. The marginal tax rate for Interamerica is $30\%.$ The project will generate the following figures for each year during the life of the project: Sales of $$70$ million, Operating Expenses of $$5$ million and Depreciation and Amortization charges of $$12$ million. The firm uses straight$-$line depreciation and assumes that the equipment will fully depreciate at the end of the project. If the market value of the equipment is $$4$ million at the end of the project, what is the Free Cash Flow of the project in year $4?$

$$55\mathrm{.}37$ million

$$58\mathrm{.}90$ million

$$37\mathrm{.}10$ million

$$56\mathrm{.}54$ million

$$ $$61\mathrm{.}26$ million