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Question 1) (15 points) In 2021, Custom Furniture had $6,500,000 in operating income (EBIT). The company had a net depreciation expense of $1,000,000 and an

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Question 1) (15 points) In 2021, Custom Furniture had $6,500,000 in operating income (EBIT). The company had a net depreciation expense of $1,000,000 and an interest expense of $1,000,000; its corporate tax rate was 30%. The company had $14,000,000 in operating current assets and $4,000,000 in operating current liabilities; it had $15,000,000 in net plant and equipment. It estimates that it has an aftertax cost of capital of 10%. Assume that Custom Furniture's only noncash item was depreciation. 4) If total net operating, capital in 2020 was $24,000,000, what was the company's free cash flow (FCF) for 2021? (3 points) 5) What was the company's Economic Value Added (EVA) in 2021? (3 points)

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