1) Company XYZ, an all-equity firm, reported incremental revenues (net income) of $378 million for the most recent year. The firm had depreciation expenses of $142 million and capital expenditures of $163 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.

2) Using MACRS, which of the following is not correct?

a)	Depreciate to zero, subtracting out salvage value

b)	It is important to know which asset class is appropriate (for tax purposes)

c)	The initial cost of the asset being depreciated should be multiplied by the percentage given in the table

d)	MACRS assumes that once you purchase the asset, you put it into effect six months later