Question: You are trying to assess how different depreciation methods will affect the free cash flows of a project for you company. The current forecasts for

You are trying to assess how different depreciation methods will affect the free cash flows of a project for you company. The current forecasts for year 1 of the project are in the table below. Assume that you can increase the depreciation expense by $17 million in year 1. By how much would the free cash flow in year 1 change as a result? Express your result in $-millions and round to two decimals (do not include the $-sign in your answer). Enter increases in free cash flows as positive numbers, decreases as negative numbers.

Project Forecasts for Year 1 (in $ millions)
Sales 157
Cost of sales 47
Selling, general and administrative expenses 8
Depreciation 26
Increase in Net Working Capital 5
Capital expenditures 33
Marginal corporate tax rate 28%

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