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 3 years' time rather than in 4 years. The current cost of a tank car is $1.9 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?
a ) Incremental FCF for year 0 is $million. ? (Round to two decimal places and outflows as negative? values.)
b) Incremental FCF for year 1 is $million. ? (Round to two decimal places and outflows as negative? values.)
C) Incremental FCF for year 2 is $ million. ? (Round to two decimal places and outflows as negative? values.)
d) Incremental FCF for year 3 is $ million. ? (Round to two decimal places and outflows as negative? values.)
e) Incremental FCF for year 4 is $ million. ? (Round to two decimal places and outflows as negative? values.)
f) Incremental FCF for year 5 is $ million. ? (Round to two decimal places and outflows as negative? values.)
g) Incremental FCF for year 6 is $ million. ? (Round to two decimal places and outflows as negative? values.)
h) Incremental FCF for year 7 is $ million. ? (Round to two decimal places and outflows as negative? values.)
i) Incremental FCF for year 8 is $ million. ? (Round to two decimal places and outflows as negative? values.)
j) Incremental FCF for year 9 is $ million. ? (Round to two decimal places and outflows as negative? values.)