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AEC Corp plans to go into business on 1/1/2022. It will start its business with a fixed asset that will cost $700. MKM will acquire

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AEC Corp plans to go into business on 1/1/2022. It will start its business with a fixed asset that will cost $700. MKM will acquire another fixed asset on 1/1/23, The cost of that asset will be $690. Its expected salvage value and useful life will be $10 and 4 years. Depreciations are $120 in 2022 and $200 in 2023 . MKM expects to generate revenues of $1,000 and $1,200 in 2022 and 2023 respectively. Operating expenses (cash operating costs) excluding depreciation are expected to be 40% of of revenues in each of 2022 and 2023 . Interest expenses in 2022 and 2023 are expected to be $20 and $30 respectively. MKM's tax rate is expected to be 30%. You have the following additional information: \begin{tabular}{lccc} Current Assets & 1/1/2022 & 1/1/2023 & 1/1/2024 \\ AP + Accruals & $110 & 5100 & 5150 \\ gross fixed assets & 10 & 30 & 50 \\ & 700 & 1,600 & 1,600 \\ \hline & & \\ Stock Price & 2022 & 2023 & \\ Number of Shares & 510 & 58 & \\ EPs & 20,000 & 30,000 & \\ Dps & 10.30 & -10.60 & \\ & 50.15 & 50.10 \end{tabular} Compute the lollowing for 2022 and 2023 : 1, EBI - revenue - cash operating costs - depreciation 2022 2023 2. net income = (EBIT - interest (1-taxrate) 2022 2023 3. net operating profit after tax (NOPAT) = EBIT (1-taxrate) 20222023 4. net cash flow = net income + depreciation 20222023 5. net operating cash flow = EBIT (1 taxrate )+ Depreciation = NOPAT + Depreciation 20222023 6. net operating working capital = all current assets excluding short-term investments - all current liabilities that do not charge interest 202220232024 7. net operating capital = net operating working capital + net fixed assets 202220232024 8. gross investment in operating capital =net operating capital in year (t+1) - net operating capital in year ( t ) 2022 2023 9. net investment in operating capital = gross investment - depreciation 20222023 10. free cash flow = operating cash flow - gross investment in operating capital = NOPAT - net investment in operating capital 2022 2023 11. What is the value of this firm on 1/1/2022, if WACC is 10%

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