Question: Can someone explain how I can answer these, please! For the company, ABC, the projected cash flow components for the next five years are as

 Can someone explain how I can answer these, please! For the

Can someone explain how I can answer these, please! For the company, ABC, the projected cash flow components for the next five years are as stated. WACC is 6% and the growth rate is projected to be 5% for free cash flows during the horizon period after 2022. using the mid-year conversion method: a) If the EBITDA exist multiple in 2022 is 18.5x, what is the PV of the terminal value of ABC company based on EBITDA exit multiple? b) What is the PV terminal value based on the perpetual growth approach? c) What is the sum of PV of free cash flows between 2018 and 2022?

D E F G I - J 2018 2019 2020 2021 2022 EBIT 4.3 4.1 4.8 5.11 4.3 1.1 1 1.5 1.6 1.9 1.29 1.23 1.44 1.53 1.19 Depreciation Tax Net Capital Spend Change in NWC 0.8 0.9 1.2 1.16 2.2 0.25 0.45 0.35 0.55 1.05 D E F G I - J 2018 2019 2020 2021 2022 EBIT 4.3 4.1 4.8 5.11 4.3 1.1 1 1.5 1.6 1.9 1.29 1.23 1.44 1.53 1.19 Depreciation Tax Net Capital Spend Change in NWC 0.8 0.9 1.2 1.16 2.2 0.25 0.45 0.35 0.55 1.05

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