You are an Investment Banker with the firm of Emerson, Lake and Palmer, LLC and you're working on a leveraged acquisition being considered by your client, Allison Chains, Inc. 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 Emerson, Lake and Palmer, LLC will want to present two general forms of analysis to the Allison Chains, Inc. 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 Allison Chains, Inc. will earn on the equity portion of their purchase of the target company. Year 1 $000s Earnings before Interest, Taxes, Depr. and Amort. 20,000 Amortization Expense 0 Depreciation Expense 3,500 Earnings Before Interest and Taxes 16,500 Interest Expense 3,500 Income Before taxes 13,000 Provision for Taxes 3,500 Net income 9,500 Other data Dividends Paid 0 Required Funding for New Working Capital (1,000) Capital Expenditures (3,700) 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.