1. You have a project available to you. The project's cash flows are: Year Cash flow 0 =-$5,000 1= 2,500 2 =500 3 =? 4= 2,000 This project has an NPV of $178.95, while the cost of capital is 10%. What is the missing cash flow at year 3?

2. You have gathered this information on a firm $500,000 sales, $10,000 cash dividends, $300,000 cost of goods sold, $20,000 administrative expense, $20,000 depreciation expense, $40,000 interest expense, $10,000 purchase of productive equipment, no changes in working capital, and tax rate of 35%. What is the free cash flow?