Calculate the cash flows for project

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Reference no: EM131900875

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 $50 million, $80 million, and $100 million, respectively. The projected depreciation will be $10 million per year for the three years. The project will require an inital outlay of $105 million for the machine and an increase in net working capital of $15 million. Assume that machine will be fully depreciated and cannot be resold. Calculate the cash flows for this project.

Reference no: EM131900875

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