Chemtec 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

$100million and\$200

$200million, 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?

*Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

Continuing from Problem 1, at the end of the first year, Chemtec is expecting sales of\$250

$250million and costs of\$125

$125million. There are no more required investments in either net working capital or plant and equipment. However, the existing plant and equipment will experience\$50

$50million of depreciation.

Assume that Chemtec's marginal tax rate on earnings is35\%

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?

*Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.