A venture has the following information: Capital Expenditure (CAPEX) = $200,000 Depreciation and Amortization Expense = $50,000 EBIT = $450,000 Income Tax Rate = 25% In addition, Year Required Cash Surplus Cash 2020 2021 60,000 80,000 25,000 45,000 3 50,000 A/R 250,000 Inventories 350,000 400,000 A/P 150,000 180,000 Accural liabilities 50,000 75,000 Bank loan 100,000 140,000 Required: 1) Find the enterprise valuation cash flow expected for 2021 (the current year, T = 0) 2) Assume that the venture enters the maturity stage of its life cycle. Its long-term growth rate is 5% (for next year (T = 1), and beyond). The venture carries its debt at an annual interest rate of 10% and its equity investors require a 20% return. Its target debt to asset ratio is 30%. In addition to the bank loan, it also has publicly trading bonds valued at $200,000. Find the venture's equity value today (at T = 0). = A venture has the following information: Capital Expenditure (CAPEX) = $200,000 Depreciation and Amortization Expense = $50,000 EBIT = $450,000 Income Tax Rate = 25% In addition, Year Required Cash Surplus Cash 2020 2021 60,000 80,000 25,000 45,000 3 50,000 A/R 250,000 Inventories 350,000 400,000 A/P 150,000 180,000 Accural liabilities 50,000 75,000 Bank loan 100,000 140,000 Required: 1) Find the enterprise valuation cash flow expected for 2021 (the current year, T = 0) 2) Assume that the venture enters the maturity stage of its life cycle. Its long-term growth rate is 5% (for next year (T = 1), and beyond). The venture carries its debt at an annual interest rate of 10% and its equity investors require a 20% return. Its target debt to asset ratio is 30%. In addition to the bank loan, it also has publicly trading bonds valued at $200,000. Find the venture's equity value today (at T = 0). =