1) Chemical Tech Inc is undertaking a project that will require an upfront investment today in net working capital, and plant and equipment (i.e., capital expenditures) of $100 million and $200 million, respectively. If there are no revenues or expenses expected until next year, what is the project's free cash flow today in millions of dollars?

-300

At the end of the first year, Chemical Tech Inc is expecting sales of $250 million and costs of $125 million. There are no more required investments in either net working capital or plant and equipment. However, the existing plant and equipment will experience $50 million of depreciation.

Assume that Chemtec's marginal tax rate on earnings is 35%.

Assuming that all of these cash flow occur at the end of the first year, what is the first year's free cash flow?

2) FRD is evaluating a project that has the following annual free cash flows:

Period	0	1	2
Free Cash Flow	150	100	150

If the project's discount rate is 12%, then what is the NPV of the project?

3) Makie is evaluating a project that has the following annual free cash flows:

Period	0	1
Free Cash Flow	175	200

What is the projects IRR?