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Spiderman Corp is deciding whether to expand its production facilities. Although long term cash flows are...

Spiderman Corp is deciding whether to expand its production facilities. Although long term cash flows are difficult to estimate, management has projected the following cash flows for the first year (in millions of dollars):

Year 1

Revenues

125

Costs of Goods Sold

20

Other Operating Expenses Other Than Depreciation

20

Depreciation

25

Increase in operating working capital

5

Capital expenditures

30

Marginal corporate tax rate

35%

What is the projected free cash flows for this project for the first year?

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