Your firm had an EBIT of ($105,000) last year. You have ($15,000) in personal expenses annually paid

Question:

Your firm had an EBIT of $$105,000$ last year. You have $$15,000$ in personal expenses annually paid by the company. Depreciation expense was $$2,000$, and you will purchase new office equipment at a cost of $$5,000$. You paid yourself a salary of $$200,000$, but you know you could hire someone else to be a manager for $$75,000$. What was your EBITDA and estimated free cash flow this year?

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