Start with the partial model in the file Ch17 P12 Build a Model.xlsx on the textbook’s Web site. Kasperov Corporation has an unlevered cost of equity of 12% and is taxed at a 25% rate. The 4-year forecasts of free cash flow and interest expenses are shown in the following table; free cash flow and interest expenses are expected to grow at a 5% rate after Year 4. Using the compressed APV model, answer the following questions. 

a. Calculate the estimated horizon value of unlevered operations at Year 4 (i.e., immediately after the Year-4 free cash flow).
b. Calculate the current value of unlevered operations.
c. Calculate the estimated horizon value of the tax shield at Year 4 (i.e., immediately after the Year-4 free cash flow).
d. Calculate the current value of the tax shield.
e. Calculate the current total value.

INPUTS (In Millions) Year: Free cash flow Interest expense 1 $200 $100 Projected 2 $280 $120 3 $320 $120 4 $340 $140