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What is the company free cash ?ow

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Reference no: EM133000151

A?rm is considering the purchase of a machine which would represent an investment of $32 million, and would be depreciated in a straightline basis over 4 years. Sales are expected to be $14 million per year, and operating costs 31% of sales. The company is currently paying $4 million in interest per year, has a tax rate of 40%, and a WACC of 10%. What is the company's free cash ?ow for year 1 of this project? Enter your answer in millions of dollars, rounded to 1 decimal, and without the dollar sign. For example, if your answer is 10.5678, enter 10.6. Use the minus sign ('-') if cash ?ow is negative.

Reference no: EM133000151

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