A company is considering the below project which is expected to have the below first year (t=1) financial information (only net working capital is due immediately, i.e., at t=0): Revenue: $58 million EBITDA: $14 million Depreciation and Amortization: $2.5 million Capital Expenditure: $2 million Tax rate: 30% Net working Capital at t=0 only: $7 million (the NWC will be recovered at the end of the project) It is expected that over 10 years the EBITDA margin will increase by 0.4% a year, while depreciation and cap-ex remain a constant % of revenues. Revenues will grow by 3% a year (after 10years, the project is completed and NWC is recovered). Required rate of return is 11%. In the spreadsheet, provide support for your calculations.

What is your estimate of final free cash flow at t=5?