7.You are preparing a discounted free cash flow analysis for BMY Inc. For year 1 of the projection period BMY expects EBITDA of $700,000, depreciation and amortization of $100,000, capital expenditures of $150,000, working capital investment of $50,000, cash of $40,000 and a tax rate of 25%.

What would be the free cash flow for BMY in Year 1?

8.Work Inc. is evaluating a capital project using the net present value method. The project has an initial cash outflow of $900,000 and the annual after-tax cash inflows for the project are below. For capital projects management requires a rate of return of 11.0%.

Cash inflows are as follows: year 1 $225,000, year 2 $225,000, year 3 $275,000, year 4 $250,000 year 5 $200,000, and year 6 $175,000.

What is the net present value of the project? (round to the nearest dollar)