Incremental free cash flows should be included to account

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Mersey Chemicals manufactures polypropylene that it ships to its customers via tank car. Currently it plans to add two additional tank cars to its fleet four years from now.? However, a proposed plant expansion will require? Mersey's transport division to add these two additional tank cars in 1 ?years' time rather than in 4 years. The current cost of a tank car is $ 1.9 ?million, and this cost is expected to remain constant.? Also, while tank cars will last? indefinitely, they will be depreciated? straight-line over a? five-year life for tax purposes. Suppose? Mersey's tax rate is 38%.

When evaluating the proposed? expansion, what incremental free cash flows should be included to account for the need to accelerate the purchase of the tank? cars?

Incremental FCF for year 0 is $____ million

Incremental FCF for year 1 is $____ million

Incremental FCF for year 2 is $____ million

Incremental FCF for year 3 is $____ million

Incremental FCF for year 4 is $____ million

Incremental FCF for year 5 is $____ million

Incremental FCF for year 6 is $____ million

Incremental FCF for year 7 is $____ million

Incremental FCF for year 8 is $____ million

Incremental FCF for year 9 is $____ million

Please show me step by step on excel how to solve this.

Reference no: EM131314801

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