1. Falstaff consulting had annual sales of $2.5 million, operating expenses of $1.7 million, depreciation expense of $215,000, net income of $325,000 and at a tax rate of 21% paid $99,750 in taxes operating cash flows for Falstaff closet to:

B.$462,150

C. $590,250

2. When introducing a new product, companies account for lost sales of existing products. This is known as:

A. a side benefit

B. erosion or cannibalism

C. an opportunity cost

Please help with above Finance questions and explain, thanks.