1. The following table summarizes the revenue projections for Iridium based on exhibit 4A, prepared by Merrill Lynch: Year Sales ($ billions) Higher boundary Lower boundary 1998 0.3 0.0 1999E 1.2 0.1 2000E 2.6 0.2 2001E 3.2 0.7 2002E 4.6 1.3 2003E 6.1 2.1 2004E 6.9 2.8 2005E 7.3 3.9 2006E 7.8 4.6 Considering the project cost of Iridium, sponsored by Motorola (see exhibit 1), in voice transmission segment, Calculate the minimum and maximum net present values (NPV), assuming that the free cash flows represent 40.00% of the projected sales. Please, consider the perpetual growth of rate of 10% beyond 2006E. (15 marks) 1. The following table summarizes the revenue projections for Iridium based on exhibit 4A, prepared by Merrill Lynch: Year Sales ($ billions) Higher boundary Lower boundary 1998 0.3 0.0 1999E 1.2 0.1 2000E 2.6 0.2 2001E 3.2 0.7 2002E 4.6 1.3 2003E 6.1 2.1 2004E 6.9 2.8 2005E 7.3 3.9 2006E 7.8 4.6 Considering the project cost of Iridium, sponsored by Motorola (see exhibit 1), in voice transmission segment, Calculate the minimum and maximum net present values (NPV), assuming that the free cash flows represent 40.00% of the projected sales. Please, consider the perpetual growth of rate of 10% beyond 2006E. (15 marks)