Question 2: You are considering the Free Cash Flow model in valuating ABC Co. After consulting various sources, you find that the company's required rate of return for the entire firm is 15.35% and the tax rate is 35%. ABC Co. had EBIT last year of $5 million, which is net of a depreciation expense of $4.5 million. In addition, Lauryn made $4.25 million in capital expenditures and increased net working capital by $2.1 million. Assume the company's FCF is expected to grow at a rate of 2 percent into perpetuity. Answer the following: (1) What is ABC's discretionary cash flow for next year? (2) If applicable, value ABC using the Free Cash Flow model