Question: Projected Year: 1 2 3 4 5 6 EBIT 4 . 3 4 . 1 4 . 8 5 . 1 1 4 . 3

Projected Year:123456EBIT4.34.14.85.114.34.5Depreciation1.111.51.61.92.1Tax1.291.231.441.531.191.05Net Capital Spending0.80.91.21.162.21.2Change in NWC0.250.450.350.551.050.95 For Company ABC,the projected cash flow components (in $mil) for the next six years are as stated. WACC is 8%, and the growth rate is projected to be 4% for free cash flows during the horizon period after the terminal year. Using mid-year convention method: What is the sum of PV of free cash flows for the projection period (year 1 to year 6)?

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