Assume that machine will be fully depreciated and cannot be


You have been asked to estimate the cash flows for an upcoming project that will last 3 years. The projected net income for the next three years are $100 million, $120 million, and $150 million, respectively. The projected depreciation will be $15 million per year for the three years. The project will require an inital outlay of $175 million for the machine and an increase in net working capital of $5 million. Assume that machine will be fully depreciated and cannot be resold. Calculate the cash flows for this project.

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Financial Management: Assume that machine will be fully depreciated and cannot be
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