Spirialtex Inc., announced aggressive growth plans over the next three years. Below are the expected investments in fixed and working capital and corresponding pro forma income statements for each of the next 3 years. Year 1 2 3 Tax rate 40% 40% 40% Capital Expenditures 25 35 50 Change in NWC 5 6 7 Shares Outstanding 6 6 6 Sales (000,000) 100 200 250 COGS 75 100 125 Sales & Administrative Expense 15 20 20 25 Depreciation & Amortization 50 51 52 Total Operating Costs 140 171 202 Operating Income (EBIT) 10 29 48 Interest Expense 4 5 6 Earnings Before Taxes 6 24 42 Taxes 2.4 9.6 16.8 Net Income 3.60 14.40 25.20 EPS 0.60 2.40 4.20