Question 15 (Mandatory) (10 points)

Projected Year:	1	2	3	4	5	6
EBIT	4.3	4.1	4.8	5.11	4.3	4.5
Depreciation	1.1	1	1.5	1.6	1.9	2.1
Tax	1.29	1.23	1.44	1.53	1.19	1.05
Net Capital Spending	0.8	0.9	1.2	1.16	2.2	1.2
Change in NWC	0.25	0.45	0.35	0.55	1.05	0.95

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) ? (10 Points)

Question 15 options:

A)	16.33
B)	8.85
C)	10.24
D)	12.33
E)	14.04