Q1. Temporary Housing Services Incorporated (THSI) is considering a project that involves setting up a temporary housing facility in an area recently damaged by a hurricane. THSI will lease space in this facility to various agencies and groups providing relief services to the area. THSI estimates that this project will initially cost $6 million to set up and will generate $24 million in revenues during its first and only year in operation (paid in one year). Operating expenses are expected to total $6 million during this year and depreciation expense will be another $4 million. THSI will require no working capital for this investment. THSI's tax-rate is 20% Assume that THSI's cost of capital for this project is 15%. The net present value (NPV) of this temporary housing project is closest to: Please show full calculation in a clear and easy way to read O A.- $15 O B. $7.217.391 O C. $14.434,782 O D.-$7,217,391 Q2. CathFoods will release a new range of candies which contain anti-oxidants. New equipment to manufacture the candy will cost $2 million, which will be depreciated by straight-line depreciation over five years. In addition, there will be $5 million spent on promoting the new candy line. It is expected that the range of candies will bring in revenues of $4 million per year for five years with production and support costs of $1.5 million per year. If CathFood's marginal tax rate is 20%, what are the incremental earnings in the second year of this project? Please show full calculation in a clear and easy way to read O A. $1.680 million O B. $2.100 million O C. $0.800 million O D. $0.420 million Q3. Cellular Access, Inc., a cellular telephone service provider, reported net income of $243.1 million for the most recent fiscal year. The firm had depreciation expenses of $101.1 million, capital expenditures of $197.4 million, and no interest expenses. Net working capital increased by $9.9 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year. Please show full calculation in a clear and easy way to read The free cash flow is $ ..... million. (Round to one decimal place.) Q4. Daily Enterprises is purchasing a $10.2 million machine. It will cost $48,000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.3 million per year along with incremental costs of $1.5 million per year. Daily's marginal tax rate is 21%. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental freecash flows associated with the new machine? Please show full calculation in a clear and easy way to read (a) The free cash flow for year 0 will be $ ........... (Round to the nearest dollar.) (b) The free cash flow for years 1-5 will be $............. (Round to the nearest dollar.)