Question 38 (5 points) Vivian Inc.'s earnings before interest and taxes in this year is $5.95 million. Its depreciation is $1.20 million, and subject to a tax rate of 20%. Tom is the CEO of the company. He is in the process of calculating and analyzing the company's free cash flow level in the year. He has already calculated the company's capital expenditures and found that to be $2.1 million. He also found that firm's last year's net operating working capital (NOWC) is $0.5 million and this year it becomes $1million. (1) Help Tom to finish his free cash flow calculation using the information provided. (You MUST show your work to earn credit!! The final answer of each question should keep two decimal places.) (2) Tom wants to know if the company has enough free cash flow to be used for its $0.4 million interest and principal payments on existing debts. Based on your previous calculation result to tell Tom if the company is able to do so or not