Problem 1 A client makes the following forecast: Year 1 Year 2 Year 3 NOPAT 10.00 12.00 14.00 Depreciation 2.50 3.00 3.50 Addition to operating working capital 1.00 1.00 1.50 Capital expenditures 5.00 6.00 7.00 Invested capital beginning of year 1 was $134.50. FCF will grow at rate of 5% per year after year 3. WACC is 10%. a. Compute FCF for years 1-3. b. Compute book value of invested capital at end of years 1-3. c. Compute TV at end of year 3.