Using the following free cash flow data: Year Cash Flow

2014 $1,500,000

2015 $2,300,000

2016 $3,000,000

2017 $3,400,000

2018 $1,800,000

a. Calculate geometric total return b. Annualized rate of return c. Prepare a 10 year cash flow forecast based upon the annualized rate of growth in cash flow d. Calculate the net present value of the forecasted cash flows assuming an immediate investment cost of $18,500,000 a. Estimate cost of capital using the following data: Market value of debt - $600,000 Market value of equity - $1, 400,000 Current yield on debt 7.3% Tax rate 35% Expected market return 12% Current 10 year US Treasury 3.8% Beta 2.1