QUESTION 7 Hartzell Inc. had the following data for 2010, in millions: Net income = $600; after-tax operating income (EBIT(1 - 1)] = $700; and Total assets = $2,000. Information for 2011 is as follows: Net income = $825; after-tax operating income (EBIT(1 - 1)] = $925; and Total assets = $2,500. How much free cash flow did the firm generate during 2011? $383 $425 $468 $514 $566 QUESTION 8 Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $9,000, and $15,000 over the next three years, respectively. After that time, Marko feels ABC will be worthless. Marko has determined that a 14% rate of return is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.? $19,201.76 $21,435.74 $23,457.96 $27,808.17