A firm is considering the purchase of a machine to produce tin cans, which would represent...

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A firm is considering the purchase of a machine to produce tincans, which would represent an investment of $38 million, and wouldbe depreciated in a straight-line basis over 5 years. Sales areexpected to be $17 million per year, and operating costs 49% ofsales. The company is currently paying $1 million in interest peryear, has a tax rate of 40%, and a WACC of 10%. What is thecompany’s free cash flow for year 1 of this project?
Enter your answer in millions of dollars, rounded to 2 decimals,without the dollar sign. So, if your answer is 4.5678, just enter4.57.

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A firm is considering the purchase of a machine to produce tincans, which would represent an investment of $38 million, and wouldbe depreciated in a straight-line basis over 5 years. Sales areexpected to be $17 million per year, and operating costs 49% ofsales. The company is currently paying $1 million in interest peryear, has a tax rate of 40%, and a WACC of 10%. What is thecompany’s free cash flow for year 1 of this project?Enter your answer in millions of dollars, rounded to 2 decimals,without the dollar sign. So, if your answer is 4.5678, just enter4.57.