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2. Lakeview Enterprises is deciding whether to expand its production facilities. Management has projected the following information over the next two years: Year 1 Year

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2. Lakeview Enterprises is deciding whether to expand its production facilities. Management has projected the following information over the next two years: Year 1 Year 2 Revenues 125 160 COGS 40 60 Depreciation 25 36 Increase in NWC Capital Expenditures 30 40 Tax rate 35% 35% 5 Calculate net income and free cash flows for both years (5 points)

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