Please Answer number 2

quantitative analysis or qualitative reasoning. 1. A firm is considering a new project whose data are shown below. The required equipment has a 3-year useful life after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. [5 points) Equipment cost (depreciable basis) $97.000 Straight-line depreciation rate 33.333% Sales revenues, each year $60,000 Operating costs (excl. depr.) $25,000 Tax rate 35.0% 2. One of the fundamental concepts in finance is that "Cash, not profits, is king". This is exemplified in free cash flow calculations from a project, for instance. Adjustments are made going from operating income (EBIT) to operating cash flow (OCF). What adjustments are made, and what are the reasons thereof? (5 points) HTML Editora