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Can you answer these 2 questions please and provide the solutions as well so I can understand it better. Thanks in advance! 1.

A firm had after-tax income last year of $1.0 million. Its depreciation expenses were $0.2 million, and its total cash flow was $1.0 million. What happened to net working capital during the year?

Enter your answer in millions rounded to 1 decimal place.)

2.

Consider a project with the following data: accounting break-even quantity = 17,000 units; cash break-even quantity = 13,200 units; life = 5 years; fixed costs = 150,000; variable costs = 23 per unit; required return = 16 per cent.

Required:

Ignoring the effect of taxes, find the financial break-even quantity. Assume the company uses the straight line depreciation method (Do not round intermediate steps. Round your answer to the nearest whole. The program includes a margin of error of +/- 1%.) Hint 1: Use the cash break-even formula to find the price of the product Hint 2: Use the accounting break-even formula to find the depreciation amount Hint 3: Knowing the depreciation amount each year and the life of the project, you can now calculate the initial investment. Hint 4: The PV of the OCF must be equal to the initial investment value at the financial break-even since the NPV is zero at this point.

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