(Answered) A company has projected this information over each of the

Finance

A company has projected this information over each of the next three years

Year 1 Year 2 Year 3

Sales $550,540 $840,550 $652,250

Costs $120,400 $202,350 $184,350

Depreciation $14,574 $35,541 $24,541

EBIT $415,386 $602,659 $443,359

Taxes (34%) $141,231 $204,904 $150,742

CAPEX $22,548 $31,541 $28,541

Increases in NWC $12,540 $13,647 $12,980

After Year 3, the company anticipates maintaining a future free cash flow that is equal to the third year's free cash flow indefinitely.

What is the value of this firm if the weighted average cost of capital is 10%?

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