A group of investors is considering buying the Grande Corporation, but does not want to contribute to the companys financial support after the purchase. Grandes management has offered the following financial statements covering last year ($M omitted):

Grande Corporation
Balance Sheets
	ASSETS
	Beginning	Ending
Cash	6	9
Accts receivable	13	20
Inventory	12	7
CURRENT ASSETS	31	36
Fixed Assets
Gross	100	115
Accumulated depreciation	(12)	(18)
Net fixed assets	88	97
TOTAL ASSETS	119	133
	LIABILITIES & EQUITY
Accts payable	17	21
Accruals	6	8
CURRENT LIABILITIES	23	29
Debt	71	59
Equity	25	45
TOTAL LIABILITIES & EQUITY	119	133

Grande Corporation
Income Statement
Sales	102
COGs*	32
Depreciation	6
Gross Margin	64
Expenses	31
EBIT	33
Interest	5
EBT	28
Tax	8
Net income	20
*Cost of Goods Sold

Grande paid no dividends and sold no new stock during the year. The firms tax rate is 40%.

1. Develop Grandes free cash flow and make a recommendation as to whether it seems to be an appropriate acquisition for the investors. Round your answer to one decimal place. Enter your answer in million of dollar.
2. Free Cash flow $ -------------- millions
3. Is this an appropriate investment for investors (Yes/No)? --------------
4. Assume that the investors will purchase the company subject to its existing debt ($59M). Does that change your recommendation (Yes/No)? ------------------