work through a proforma income statement to determine the cash flows from the project. Below are some estimates that the marketing department has determined. Other assumptions necessary for completing the proforma income statement can be found by looking at some of the historical average values in Johnson & Johnsons financial statements. Suppose Johnson & Johnson $($ticker symbol $-$ jnj$)$ has decided to introduce a new heart stent, the Heart Flow. Before they launched the Heart Flow, they analyzed it to see if it would be a desirable investment. The company estimated that it would sell $950,000$ Heart Flows per year at a price of $$75,000$ for the next six years. After the first year of sales, the quantity sold will increase by $2\%$ per year for the remaining life of the project.The initial capital outlay is determined to be $$15$ billion and a $$2\mathrm{.}0$ billion outlay in net working capital $($NWC$)$ would also be required. Assume that there is a one$-$time investment in NWC and that this will be recovered at the end of the project.Assume that the equipment used will be depreciated using the MACRS $7$ year schedule and that the equipment has a salvage value of zero. At the end of year $6,$ the equipment will be sold for $120\%$ of its book value. Also, assume that the tax rate is $25\%.$ Using information from Johnson & Johnsons financial statements $($you may want to use Morningstar.com or some other online site$)$ estimate the operating cash flows from the project. Make any simplifying assumptions that are necessary to produce the estimate. Morningstar has changed their website. They used to report COGS and SGA percentages, they dont seem to now. If you find them, let me know. Use a fixed $60\%$ as the SGA percentage. For COGS$\%,$ click the tab for Operating Performance, and compute COGS$\%=1$ Gross Margin $\%.$