Last year Robotics Inc. Had $5,000,000 in operating income (EBIT). The company had a Net depreciation expense of $1,000,000 and interest expense of $1,000,000; its corporate tax rate was 40%. The firm has 14,000,000 in non-interest-earning current assets and $4,000,000 in non interest-bearing liabilities; it has $15,000,000 in net plant and equiupment. It estimates that it has an after-tax cost of capital of 10%. Assume Robotics only non-cash item was depreciation.

1. What is the companys net income for the year?

= Net Income 2.4mill

2. What is the companys net cash flow?

Net income + Depreciation

3. What is the companys net operating profit after taxes (NOPAT)?

EBIT-(1-Tax rate)

4. What is the companys operating cash flow?

5. If the capital in the previous year was $24,000,000, what is its free cash flow for the year (FCF)?

6. What is the companys Economic Value Added (EVA)?