Your firm is considering an overseas expansion. Below is the
information that you have been given regarding the project: Initial
Equipment Cost: $100m. Life of System: 5 years. Depreciation
method: Straight line Depreciation. Expected overseas sales: $110m
per year. Raw materials: $70m per year. Salaries for new workers:
$20m per year. Net Working Capital necessary for plant to operate
effectively: $25m (assume that this investment is required at the
start of the project and is recovered when the plant shuts down
after 5 years.) Marginal Tax Rate on income and capital gains: 40%
Expected salvage value of equipment after 5 years: $30m. What will
be the cash flows of this project in millions? -125/32/32/32/32/75
-100/26.5/26.5/26.5/26.5/81.5 -100/9.1/9.1/9.1/9.1/28.6
-125/26.5/26.5/26.5/26.5/71 -125/26.5/26.5/26.5/26.5/81.5
