A stationary company plans to launch a new type of indelible ink pen. Advertising for the new product will be heavy and will cost the company $8 million, although the company expects general revenues of $280 million next year from sources other than sales of the new pen. If the company has a corporate tax-rate of 30% on its pre tax income, what effects will the advertising for the new pen have on its taxes? a. Reduce taxes by $2.40 million b. Increase Taxes by $8 million c. Increase taxes by $2.40 million d. It will have no effect on taxes Bubba Ho-Tep Company reported net income of $250 million for the most recent fiscal Y firm had depreciation expenses of $125 million and capital expenditures f$l40 million Although it had no interest expense, the firm did have an increase in net working capital -million. What is Bubba Ho-Tep's free cash flow? a. $255 million b. $215 million c. $535 million d. -$35 million Suppose a project has the following free cash flows: By how much could the discount rate rise zero given that it 10%? a. 18% b. 33% c. 28% d. 23%