You are considering whether to go to work for a firm and you want to verify that the firm has positive cash flow. From the income statement, you determine the net profit margin is 7% with sales of $7 million a year. The firm has an interest expense of $50,000 and taxes of $300,000. The firm paid off S500,000 in long-term debt since last period, reduced CAPEX by $1.5 million, and uses its suppliers to finance its short-term operations so its net working capital has decreased $750,000 since the last period

The income statement reveals the firm has $200,000 in depreciation over the period. What is the FCFF?

In the question above, what would be the free cash flow to equity?

. In the two questions above, if the firm had a weighted average cost of capital of 12% and book value of interest-bearing debt of $2 million, book value of equity at $4 million, market value of interest-bearing debt of $2.3 million, and market value of equity of $8.2 million, what is the economic value added?