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A factory is considering a new expansion plan, which requires an initial investment of $...

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Accounting

A factory is considering a new expansion plan, which requires an initial investment of $ 100 million, it will last 5 years and is depreciated
straight-line to a book value of 0. Salvage value of the new machinery at t=5 is $10 million. The project generates revenue of $50 million each of
the 5 years and costs amount to 30% of revenues. At year 1, Inventory will rise by $2 million, and A/R will rise by $1 million. All working capital components return to original values at the end of the project's life.
Firm tax rate is 40% and the WACC is 4%.
Input the numbers in millions.
1) What is the change in working capital in year 5?
2) what is thr project FCFF in year 1?

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