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HomeWeb UK is a subsidiary of HomeWeb USA. The company manufactures home security system. HomeWeb UK has forecasted the sales and cost figures for the

HomeWeb UK is a subsidiary of HomeWeb USA. The company manufactures home security system. HomeWeb UK has forecasted the sales and cost figures for the next three years. They are as follows: Sales Volume = 100,000 units Sales Price = 100 per unit Cost = 60 per unit UK Corporate tax rate = 25% Spot Exchange rate = $1.50/ Forward rate =$1.55 Operating Expenses = 15 percent of Sales Revenue Depreciation = 500,000 Discount rate = 7 percent What is the free cash flow for HomeWeb UK for each of the three years?

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