1. A company has new equipment costs of $2 million, which will be depreciated to zero using straight-line depreciation over 8 years. The company expects to bring in revenues of $8 million per year for 8 years with production costs of $1.4 million per year. If the company's tax rate is 16%, what are the incremental earnings (not cash flows) of this project in years 1-8? Enter your answer in dollars and round to the nearest dollar.

2.

MACRS Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Depreciation Rate 20% 32% 19.2% 11.52% 11.52% 5.76% A company invests $29899 in new machinery, which was depreciated using the five-year MACRS schedule shown above. If the company sold the machinery immediately after the end of year 3 for $11709, what is the after-tax salvage value from the sale, given a tax rate of 37%? Enter your answer in dollars and round to the nearest dollar.

3.

You are considering adding a new division into your existing firm. This will entail an increase in inventory of $8831, an increase in accounts payables of $2462, and an increase in property, plant, and equipment of $40,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the new division is _______________. Enter your answer in dollars and round to the nearest dollar.

4. Company XYZ, an all-equity firm, reported incremental revenues (net income) of $309 million for the most recent year. The firm had depreciation expenses of $123 million and capital expenditures of $172 million. The company also had an increase in net working capital of $20 million. What is the free cash flow? Enter your answer in dollars and round to the nearest dollar.