Question 1 You are trying to estimate the free cash flow to the firm for USF Inc., a technology firm. The firm reported $80 million in EBIT , $30 million in CAPEX, and $20 million in depreciation. Other related factors: 1. The firm had R&D expenses of $50 million in the most recent year.; You believe that a 3-year amortizable life is appropriate for this firm and the R&D expenses for the past three years have amounted to $40 million (Last Year), $30 million (Two Years Ago), and 20 million (Three Years Ago). 2. The firm made two acquisitions during the year. The first acquisition was a cash-based acquisition for $45 million. The second acquisition was a stock- based acquisition for $35 million. If the firm has no working capital requirements and a tax rate of 40%, estimate the free cash flow to the firm in the most recent year. Free Cash Flows to the Firm = EBIT*(1-T) + Depreciation & Amortization - Change in Net Working Capital* - CAPEX *Net Working Capital should be defined as Noncash Working Capital as discussed in class