Please provide explanation to solution. Thank you.

Year 1 Year 2 Year 3 Year 0 Revenues - Cost of Goods Sold - Depreciation =EBIT -Taxes (35%) =U 425.000 425.000 425,000 - 155,000 -155,000 -155,000 - 95,00095.000 95.000 175,000 75,000 175,000 -61,250-61,250-61,250 113,750 113,750 113,750 95,000 - 30,00030,000 30,000 nlevered net income +Depreciation 95,000 95,000 Additions to Net Working Capital - Capital Expenditures =Free Cash Flow - 350,000 178,750 178,750 178,750