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Giant Corp. is considering a project that requires a $1,500initial cost for a new machine that will

Giant Corp. is considering a project that requires a $1,500initial cost for a new machine that will

Giant Corp. is considering a project that requires a $1,500initial cost for a new machine that will be depreciated straightline to a salvage value of 0 on a 5-year schedule. The project willrequire a one-time increase in the level of net working capital of$300. The project will generate an additional $1,600 in revenuesand $700 in operating expenses each year. The project will end atthe end of year 2, at which time the machinery is expected to besold for $800. GiantAc€?cs tax rate is 50%.A. In a discounted cash flow analysis of this project, whatwould be the projected Year 0 free cash flow?B. In a discounted cash flow analysis of Giant Corp.Ac€?cs projectdescribed in the problem above, what would be the projected Year 1free cash flow?C. In a discounted cash flow analysis of Giant Corp.Ac€?cs projectdescribed in the problem above, what would be the projected Year 2free cash flow?