David Smith from Oppenheimer is evaluating ABC Inc. for possible inclusion into growth portfolio in 2016. Short-term forecasts are tied up to Sales ($2,500 in 2016) and expected to be as follows over 2017-2019: - Sales growth rate forecasts 12% for three years - COGS is 50% of Sales - Net non-cash charge is fixed at 4% of Sales - Corporate tax rate is 23% - Investment in Fixed Capital(FC) =35% of Increase in Sales - Investment in Working Capital(WC) =8% of Increase in Sales As to long-term forecasts following 2019, Oppenheimer has different expectations on FCF (without Investment adjustments) and FC/WC investments: - For FCF (without Investment adjustments), David foresees a linear increase from 6% to a longterm constant rate of 10% over a 8-year period beginning at the end of 2019 . - For FC and WC investments, David is expecting the growth rate to be constant at 6% starting at the end of 2019. If WACC=12%, please compute the fair valuation of ABC Inc. using FCF/EBIT approach