A firm is considering the purchase of a machine which would represent an investment of $31 million, and would be depreciated in a straightline basis over 4 years. Sales are expected to be $11 million per year, and operating costs 43% of sales. The company is currently paying $2 million in interest per year, has a tax rate of 40%, and a WACC of 10%. What is the company’s free cash flow for year 1 of this project?
Enter your answer in millions of dollars, rounded to 1 decimal, and without the dollar sign. For example, if your answer is 10.5678, enter 10.6