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Use the followinginformation to answers questions 17 to26. (LongAnswer/Essay – primarily Chapter 13 but includes concepts from manychapters) You are the CFO of Micro Spinoff Inc. The company has 3,000,000 sharesof common stock outstanding at a market price of $50 a share.Micro Spinoff just paidan annual dividend in the amount of $3.12 per share. The dividendgrowthrate is 5.8 percent annually. Micro Spinoff also has 70,000 bondsoutstanding with a face value of $1,000 per bond that are sellingat 115.372 percent of par. The bonds have a 12 percent coupon, payinterest semi-annually,and have 15 years to maturity. Finally, the firm has 400,000 sharesof preferred stock outstanding at a market price of $58.48 a share.Preferred stocks pay dividend of 6.67 percent on its par value of$75.00.23. The firm is considering a three-yearexpansionproject (same operations as the existing projects of thefirm) that requires an initial investment in a machine of $200,000.The increase inNet Working Capital (NWC) at time 0 is $10,000 that will be reducedto normal levels at the end of the project at time 3. The machinehas a life of 4 years andwill be depreciated to 0 using straight-linemethod. The Earnings BeforeInterest, Taxes, Depreciation, and Amortization (EBITDA) inthe first year is $70,000 and this will grow at 6 percent a year.At the end of the project (year 3), the machine can be sold for$10,000. The firm’s tax rate is 21 percent.1. what are the annual cash flow from operations in years1,2,3?