Sound Inc. is developing a 3rd generation network music player. You have been asked to complete the capital budget for this project. So far, you have compiled the following information: - The project will last for four years. - The initial investment in equipment is $10 million. - The salvage value of the equipment will be $2 million. - The equipment will be depreciated to 0 over the next four years using straight-line depreciation. - The project needs an initial investment in net working capital of $0.5 million. - The corporate tax rate is 30%. - The cost of capital is 10%. - Assume that the firm's other projects yield a positive income before tax. Additionally, you receive the following project-related information from the accounting and marketing departments (in \$ million): What's the NCF in year 3 (in $ million)? $2.15 million $4.65 million $2.55 million $4.25 million Sound Inc, is developing a 3td generation network music player. You have been asked to complete the capital budget for this project. So far, you have compiled the following information: - The project will last for four years. - The initial investment in equipment is $10 million. - The salvage value of the equipment will be $2 million. - The equipment will be depreciated to 0 over the next four years using straight-line depreciation. - The project needs an initial investment in net working capital of $0.5 million. - The corporate tax rate is 30%. - The cost of capital is 10%. - Assume that the firm's other projects yield a positive income before tax. Additionally, you receive the following project-related information from the accounting and marketing departments (in \$ million): What's the NCF in year 0 (in $ million)? - $10 million -\$0.5 million $9.5 million - $10.5 million