What are your pro forma earnings for year 3 what are your


You are evaluating a new product. In year 3 of your analysis, you are projecting pro forma sales of $5 million and cost of goods sold of $3 million. You will be depreciating a $1 million machine for 5 years using straight-line depreciation. Your tax rate is 35%. Finally, you expect working capital to increase from $200,000 in year 2 to $300,000 in year 3. What are your pro forma earnings for year 3? What are your pro forma free cash flows for year 3?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What are your pro forma earnings for year 3 what are your
Reference No:- TGS02778324

Expected delivery within 24 Hours