1. You purchased a machine for $1.01 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 35%. If you sell the machine today (after three years of depreciation) for $721,000, what is your incremental cash flow from selling the machine?
Your total incremental cash flow will be $_______ (Round to the nearest cent.)
2. This year, FCF Inc. has earnings before interest and taxes of $9,160,000, depreciation expenses of $ 1,400,000, capital expenditures of $ 1,200,000, and has increased its net working capital by $450,000.
If its tax rate is 35 %, what is its free cash flow?
The company's free cash flow is$___________(Round to two decimal places.)