Calculate a firms free cash flow (FCF) from the Statement of Cash Flows if Net income is $60,000, depreciation expense is $10,000, working capital investment (a use of cash) is $20,000, Cash Flow From Operations is $50,000 and net Capital Expenditures (a use of cash) are $40,000.

a)

$10,000

b)

$40,000

c)

$0

d)

$100,000

What is the approximate IRR of an asset that (1) sells for $1,120, (2) exists for only 6 years and (3) pays $252 annually for each of those 6 years? You can either use your calculator or trial and error works too.

a)

15.5%

b)

9.3%

c)

12%

d)

13.2%