=+2. The table below shows the forecasts for Management plc (in millions of €):

Year 1 2 3 4 5 Sales 3960 4080 4200 4326 4458 Cost of goods sold 1782 1794 1806 1860 1917 Marketing costs 870 897 924 996 1026 Administrative costs 396 408 420 432 447 Depreciation and amortisation 330 315 300 300 300 EBIT (operating income) 582 666 750 738 768 The company is expecting annual capital expenditure of €300m per year over the next five years; working capital will increase by

€50m in years 1 and 2, and stabilise thereafter. The following information is also available:

the company has net debts today of €2250m;

the company’s cost of equity is estimated at 10%, and the cost of debt at 6% (before tax);

financing is split 2/3 equity and 1/3 debt;

the tax rate is 37%;

an increase in inflows of 2% to perpetuity can be expected from year 6.

Work out the value of Management plc using the DCF method.