Part II: (Worth 5 marks) Fill in all the (non-zero) entries in the spreadsheet below.

Kilburg Inc. is considering buying a new football manufacturing machine

It will cost $10 million and is depreciated in the 3-year MACRS class

Kilburg paid an engineer $500,000 last month to design the machine

It will cost $100,000 to install the machine

It is assumed to have a salvage value of $1,000,000 at the end of its 3-year economic life

It will generate annual incremental profits (before taxes and depreciation) of $4,000,000

The machine will require additional working capital of $700,000 (an opportunity cost)

Kilburgs tax rate is .30

Part III: Worth 5 points. Fill in the blanks in the following table.

(Data in millions)	Nick Inc.
EBIT	100
Tax	20
EBIAT
Depreciation and amortization	30
Increase in working capital	10
Unlevered FCF from Ops
Capital expenditures	30
Unlevered Free cash flow
Interest expense	5
Tax shield on interest	1
Free cash flow
Free cash flow to equity
Equity	450
Debt	160
Cash	10
Enterprise value	600
Revenue	200
Multiples
Revenue
EBIT
EBITDA
Unlevered free cash flow
Free cash flow to equity