$=17\mathrm{.}76(million)$

Part $2$

Attempt $\frac{8}{99}$ for $10$ pts$.$

What is the free cash flow in year $5($in $ million$)?$

Part $3$

Attempt $\frac{1}{99}$ for $10$ pts$.$

What is the terminal value in year $4($in $ million$)?$

Part $4$

Attempt $\frac{1}{99}$ for $10$ pts$.$

What is the current value of operating assets $($in $ million$)?$Intro

Granite Road and Building is a national construction company. In the most recent financial year, the firm had

after$-$tax operating income of $$23$ million, depreciation of $$7$ million, and capital expenditures of $$12$ million. Non$-$

cash working capital was $$20$ million at the end of the year.

The firm is growing $12\%$ per year for the next $4$ years. After year $4,$ the firm's capital expenditures will decrease

to $150\%$ of depreciation, and the growth rate will drop to $4\%($for operating income, depreciation and noncash

working capital$).$

Its cost of capital is $15\%$ and its tax rate is $30\%.$

$-$r $1$

What is the free cash flow next year $($in $ million$)?$

Correct $$

$).{?}_0$

Part $2$

What is the free cash flow in year $5($in $ million$)?$

PLEASE ANSWER ALL PARTS $2-4$