Mersey Chemicals manufactures polypropylene that it ships to its customers via tank car. Currently it plans to add two additional tank cars to its fleet four years from now.? However, a proposed plant expansion will require? Mersey's transport division to add these two additional tank cars in 22 years' time rather than in 4 years. The current cost of a tank car is $2.1 million, and this cost is expected to remain constant. ? Also, while tank cars will last? indefinitely, they will be depreciated? straight-line over a? five-year life for tax purposes. Suppose? Mersey's tax rate is 40%. When evaluating the proposed? expansion, what incremental free cash flows should be included to account for the need to accelerate the purchase of the tank? cars?
Incremental FCF for year 0 is $ million. ? (Round to two decimal places and outflows as negative? values.)
Incremental FCF for year 1 is $ million. ? (Round to two decimal places and outflows as negative? values.)
For year 2 is $ million. ? (Round to two decimal places and outflows as negative? values.)
For year 3 is $ million. ? (Round to two decimal places and outflows as negative? values.)
Year 4 is $ million. ? (Round to two decimal places and outflows as negative? values.)
Year 5 is $ million. ? (Round to two decimal places and outflows as negative? values.)
Year 6 is $ million. ? (Round to two decimal places and outflows as negative? values.)
Year 7 is $ million. ? (Round to two decimal places and outflows as negative? values.)
Year 8 is $ million. ? (Round to two decimal places and outflows as negative? values.)
Year 9 is $ million. ? (Round to two decimal places and outflows as negative? values.)