Authentic Products is a maker of authentic metal toys sold in elite Toy Stores and by catalog in the US and Western Europe. Authentic Products was started in January 2017 and an Equity Capital firm has expressed an interest in acquiring the company. Authentic's CFO has developed a set of financial projections which are summarized in the table below (all amounts are in $000). 2022 2023 2024 2025 2026 2027 EBIT $500 $500 $400 $1,700 $2,800 $4,200 Capital Expenditures $400 $600 $1000 $1000 $800 $800 Changes in Working Capital $400 $400 $200 $100 $100 ($100) Depreciation $80 $160 $205 $210 $220 $230 Beginning after the year 2027 the annual growth in EBIT is expected to be 2.20%, a rate that is projected to be constant over Authentic's remaining life as an enterprise. Beginning after 2027 Authentic's capital expenditures and depreciation are expected to offset each other (capex-depreciation = 0) and year-to-year changes in working capital are expected to be zero (working capital levels remain constant year over year). For discounting purposes consider 2022 as year 1. Assume a tax rate of 21% and a cost of capital of 7.25% Determine the company valuation of Authentic Products using the NPV method and the cash flow information provided above. The answer to this question was determined in Excel. Your answer may deviate slightly (if you are using a calculator) depending upon differences in truncation and rounding. Answers below are in $000. $1.982 $67.149 $44.121 Correct! $46,175 $3.391 $69.133 Question 28 2/2 pts Problem Counts 2 Points Continuing with Authentic Product; consider only the projected cash flows for FY2022 EBIT Capital Expenditures 2022 $500 $400 Changes in Working Capital $400 Depreciation $80 Now assume that prior to FY2022 Authentic Products had a loss carry forward of $500. Recalculate the free cash flow, including the impact of the loss carry forward, for FY2022 only Continue to assume a tax rate of 21%. Correct! -$220