Question 3. XYZ company's project valuation and risk analysis. Please use the template called "XYZ project valuation template" in Midterm Exam (in Assignments) to finish this problem. (13 points) Question 4. 1. The following is the income statement for Home Max Inc. of fiscal year ended January 31, 2016, and the balance sheets for year 2015 and year 2016. Assuming the corporate tax rate is 20%, and all debts are interest bearing, calculate the free cash flow of Home Max Inc. in year 2016. (5 points) Question 1 Please go to the Midterm Exam in assignments on Canvas and download the Eastman Chemical Company (EMN) Financial Report Template. (5 points) 1. Complete the 2017 income statement and the balance sheets of 2016 and 2017 (i.e. fill in the colored cell with proper formulas). Make sure you have a balanced balance sheet for each year. 2. Use the information in the statements to calculate financial cash flow of the company in year 2017. Question 2. A company is considering investing in a project with an option to abandon it in the future if the market condition turns unfavorable. The company estimates the following scenarios. Please calculate the value of the option ( 2 points) Favorable market condition: NPV= $12,758 Unfavorable market condition with option to abandon early: NPV=-\$12,260 Unfavorable market condition without option to abandon early: NPV=- $65,250 Probability of favorable market condition: 75% Probability of unfavorable market condition: 25% Question 3. XYZ company's project valuation and risk analysis. Please use the template called "XYZ project valuation template" in Midterm Exam (in Assignments) to finish this problem. (13 points) Question 4. 1. The following is the income statement for Home Max Inc. of fiscal year ended January 31, 2016, and the balance sheets for year 2015 and year 2016. Assuming the corporate tax rate is 20%, and all debts are interest bearing, calculate the free cash flow of Home Max Inc. in year 2016. (5 points) Question 1 Please go to the Midterm Exam in assignments on Canvas and download the Eastman Chemical Company (EMN) Financial Report Template. (5 points) 1. Complete the 2017 income statement and the balance sheets of 2016 and 2017 (i.e. fill in the colored cell with proper formulas). Make sure you have a balanced balance sheet for each year. 2. Use the information in the statements to calculate financial cash flow of the company in year 2017. Question 2. A company is considering investing in a project with an option to abandon it in the future if the market condition turns unfavorable. The company estimates the following scenarios. Please calculate the value of the option ( 2 points) Favorable market condition: NPV= $12,758 Unfavorable market condition with option to abandon early: NPV=-\$12,260 Unfavorable market condition without option to abandon early: NPV=- $65,250 Probability of favorable market condition: 75% Probability of unfavorable market condition: 25%