1. Consider the following: Sales are $625,500, Depreciation $95,000, Operating Cost $300,000, Fixed Costs $180,000, tax rate 34% What is EBITDA, EBIT and Net Income? What is Operating Cash Flow?

2. A corporation is considering manufacturing a new widget line of equipment and investing $250,000 in plant and equipment including $65,000 in NWC. The manufacturing plant will require $25,000 less labor than previously. The estimated life is 15years. Pro Forma Net Income is estimated at $27,000, depreciation $3,800 and taxes $7.000. Based on these numbers should they accept the plan, required rate 12% ?