You are an Investment Banker with the firm of Carsons INC and you're working on a leveraged acquisition being considered by your client, Lalaland, LLC. You've received financial information and projections from the target company and you begin the preparation of you DCF valuation model. You know that your Managing Director at Carsons, INC will want to present two general forms of analysis to the Lalaland, LLC board of directors.

• The first will be a valuation of the entire business enterprise based on a projection of Free Cash Flow.
• The second will be an IRR analysis of the specific investment returns in the form of Net Cash Flow that Lalaland, LLC will earn on the equity portion of their purchase of the target company

Earnings before Interest, Taxes, Depr. and Amort. $ 20,000 Amortization Expense $ 0 Depreciation Expense $ 3,800 Earnings Before Interest and Taxes $ 16,200 Interest Expense $ 2,500 Income Before taxes $ 13,700 Provision for Taxes $ 3,375 Net income $ 10,325 Other data Dividends Paid $ 0 Required Change in New Working Capital ($ 1,000) Capital Expenditures ($ 4,000) Net Debt Principal Payments ($ 1,000) Based on the information set out above, make separate calculations of the Year 1 values of FCF and NCF that you'll use in your valuation modeling