Scan Corp. is expected to have the following cash flows for the next two years. After year two the free cash flows are expected to grow at 2 percent indefinitely. The company's WACC is 7.5 percent and the tax rate is 35 percent. What are the annual free cash flows for each year of Scan Corp. based on the numbers in the table below? What is the equation for the terminal value of the firm (i.e., set up this equation)? You don't have to calculate the current enterprise value of Scan Corp.

	Year 1	Year 2
EBIT	$1,900	$2,090
Depreciation	$165	$182
Taxes	$665	$732
Capital spending	$115	$127
Change in NWC.	$85	$94