Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found.

[answerhappygod]

Do not type in numerical data into a cell or function.
Instead, make a reference to the cell in which the data is found.
Please show formulas on how to get the solution. Looking for
help in the Yellow boxes.
Year 1
Year 2
Revenues
$125
$160
Costs of goods sold and operating expenses other than
depreciation
$40
$60
Depreciation
$25
$36
Increase in net working capital
$5
$8
Capital expenditures
$30
$40
Marginal corporate tax rate
35%
35%
a.
What are the incremental earnings for this project for years 1
and 2?
Incremental Earnings Forecast (million)
Year
Year 1
Year 2
Sales
Less: Costs of goods sold and operating expenses other than
depreciation
Less: Depreciation
EBIT
Less: Income tax at 35%
Unlevered Net Income
b.
What are the free cash flows for this project for the first two
years?
Free Cash Flows (million)
Year
Year 1
Year 2
Plus: Depreciation
Less: Capital Expenditures
Less: Increases in NWC
Free Cash Flow