1. Free Cash Flow

The following information is derived from recent financial statements of BizInc Corp.: EBIT for 2014 was $299, and Depreciation Expense for 2014 was $38. The firm's tax rate is 27%. Net Operating Working Capital (NOWC) for end of year 2013 was $52, and NOWC for end of year 2014 was $50. Net fixed assets for EOY 2013 were $145 and they were $375 for EOY 2014. The Free Cash Flow for 2014 was $_________.

2. Annuity vs. Lump Sum

At what interest rate (as an EAR) would you be indifferent between the following two choices: 1) receiving $10,000 per year, starting 1 year from today, for a total of 2 payments (the last payment occurs 2 years from today in that case)... OR, 2) receiving $22,383 exactly 3 years from today? Answer: _____%