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Free Cash Inc. is anticipated to make earnings before interest and taxes (EBIT) of $40,000, $50,000, and $60,000 in each of the next three years.
Free Cash Inc. is anticipated to make earnings before interest and taxes (EBIT) of $40,000, $50,000, and $60,000 in each of the next three years. Depreciation is estimated to be $1,500, $2,500, and $3,000 in each of the next three years. Capital expenditures are estimated to be $6,000, $6,500, and $7,500 in each of the next three years. Incremental increases in working capital requirements are estimated to be $4,000, $5,000, and $5,500 in each of the next three years. Free Cash Inc.'s tax rate is 30 percent. Estimate the free cash flows to the firm for Free Cash Inc. for each of the next three years. The free cash flows to the firm for Free Cash Inc. in one year are estimated to be $. (Round to the nearest dollar.) The free cash flows to the firm for Free Cash Inc. in two years are estimated to be $. (Round to the nearest dollar.) The free cash flows to the firm for Free Cash Inc. in three years are estimated to be $. (Round to the nearest dollar.)
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