A company is considering undertaking a new project. The project will require purchasing a machine for...

A company is considering undertaking a new project. The project will require purchasing a machine for $250 today. The cost of the machine will be depreciated straight-line to zero over four years. Cash sales will be $230 per year for four years (from t=1 until t=4) and costs of goods sold will run $120 per year for these four years. At t=5 you sell the machine for $50. The firm has already spent $100 for R&D last year. The corporate tax rate is 35%. Calculate the unlevered net income and the free cash flows for years 0-5.

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