Question: Please answer these two questions and show work! You are computing the free cash flows for Kroger.Last year, one of Kroger's current liabilities was $100

Please answer these two questions and show work!

You are computing the free cash flows for Kroger.Last year, one of Kroger's current liabilities was $100 in revolving credit with a bankthat is, they had a short-term loan of $100.This year, you notice that Kroger paid off the loan and brought its revolving credit account to $0.How much did Kroger's free cash flows increase due to this action?Assume a tax rate of 30%

Assume your firm is very profitable and pays a tax rate of 30%.You recently purchased a machine for $1 million, and can choose to depreciate it straight-line over 10 years or straight-line over 5 years.Which results in a higher present value of your free cash flows?

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