1)A company has new equipment costs of $1 million, which will be depreciated to zero using straight-line depreciation over 7 years. The company expects to bring in revenues of $5 million per year for 7 years with production costs of $1,5 million per year. If the company's tax rate is 37%, what are the incremental earnings (not cash flows) of this project in years 1-7? 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 $26.917 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 $10.879, what is the after-tax salvage value from the sale, given a tax rate of 38%? 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 $8.831, an increase in accounts payables of $2.462, 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 earnings (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.