1. Why do we want to include Net Working Capital in our calculation to convert unlevered net income to free cash flow?

2. What would you expect the nominal rate of interest to be if the real rate is 3.7 percent and the expected inflation rate is 7.4 ?percent? The nominal rate of interest is %

3 .(Real interest? rates: approximation method?) If the real? risk-free rate of interest is 5.1% and the rate of inflation is expected to be constant at a level of 2.6 % what would you expect? 1-year Treasury bills to return if you ignore the cross product between the real rate of interest and the inflation? rate? The expected rate of return on? 1-year Treasury bills is nothing?%. ?(Round to one decimal? place.)