For the following problems, use Exhibit B. Exhibit B has the balance sheet and Income Statement projections for a specific company. The company is evaluating if it is worth it to have the capital investment as shown in the Capital Investment Table. The EBITDA multiplier of similar companies 10.2. The debt used has a coupon of 11.5%. The WACC is 22%

1. What would be the Free Cash Flow for 2022?

2. What would be the Free Cash Flow for 2023?

3. What is the present value of the Free cash flows?

4. What is the present value of the continuation value for the firm?

5. What is the present value of the Interest Tax Shield?

6. What is the Firm Value with the expansion of the project?

\begin{tabular}{|c|l|l|l|l|} \hline \multicolumn{3}{|l|}{ Net Working Capital Requirements } & & \\ \hline 1 & Current Assets & & & \\ \cline { 2 - 5 } 3 & Current Liabilities & & & \\ \cline { 2 - 5 } 3 & Net Working Capital & & & \\ \cline { 2 - 5 } 4 & Increase in Net Working Capital & & \\ \hline \end{tabular} \begin{tabular}{|llll|} \hline \multicolumn{4}{|c|}{ Integrated Financial Statement Template } \\ \hline & Exhibit B: Free Cash Flow and Valuation \\ \hline & \multicolumn{4}{|cc}{2021} & 2022 & 2023 \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|} \hline \multicolumn{3}{|l|}{ Free Cash Flow (000s) } & & \\ \hline 1 & Net Income & & & \\ \cline { 2 - 5 } 3 & Plus: After-Tax Interes Expense & & & \\ \cline { 2 - 5 } 3 & Unlevered Net Income & & & \\ \cline { 2 - 5 } 4 & Plus: Depreciation & & & \\ \cline { 2 - 5 } 5 & Less: Increases in NWC & & & \\ \cline { 2 - 5 } 6 & Less: Capital Expenditures & & & \\ \cline { 2 - 5 } 7 & Free Cash Flow of Firm & & & \\ \hline \end{tabular}