3 pts What is the sum of the PV of the predicted adjusted cash flow from asset in 2019, 2020, and 2021? Edit View Insert Format Tools Table 12pt Paragraph B I IUA 2 T2 , O words In 2018, MC Inc. has an EBIT of $125M, and $15M of depreciation. The tax rate is 40%. The net capital spending is $20M. The net working capital is $20M in 2018, and $40M in 2017. The predicted growth rate is 10% in the next three years. Starting in the fourth year, the growth rate will be 5% indefinitely. The firm has $400M (market value) in debt, and 100M shares outstanding. Beta of MC Inc. is 1.5. Market risk premium is 7%. Risk free rate is 5%. The WACC of the firm is 10%. A outstanding. Beta of MC Inc. is 1.5. Market risk premium is 7%. Risk free rate is 5%. The WACC of the firm is 10%. Question 22 2 pts What is the adjusted cash flow from asset in 2018? Edit View Insert Format Tools Table 12ptParagraph BI U A2T? ACF = EBIT(1-T) + DEP - NWC - CAPEX EBIT = earnings before interest and tax T = tax rate DEP = depreciation NWC = Inc/Dec in net working capital from the last year I CAPEX = capital expenditure ACF = $125M(1-0.40) + $15M - ($40M-$20M) - $20M =$75M +$15M +$20M -$20M = $90M 67 words Question 23 2 pts