Question: You are considering starting a project. The project will entail an initial investment of $5 million, and it will generate $4 million in revenue for

You are considering starting a project. The project will entail an initial investment of $5 million, and it will generate $4 million in revenue for the next 6 years. The COGS for this project will be 30% of revenue, and the project will require an annual expenditure of $0.5 million in advertising. You will depreciate the initial investment over a 4-year period using straight-line depreciation. Each year, the project will generate a level of accounts receivable equal to 12% of its revenues, and accounts payable equal to 6% of its revenue. For example, if revenue in year 2 is $100, account payable at the end of year 2 will be $6. If the tax rate is 26%, what will be the FCF generated by this project in year 3?

Answer in Million dollars and round to the first two decimal places.

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