After year 4, you believe your firm's free cash flows will grow at a rate of 4%, in perpetuity. Find the "horizon value" of this project and the present value of this horizon value. What is the net- present value of your firm's investment in knife manufacturing? Be sure to include the total value of the first four years, and the (appropriately discounted) horizon value.

After year 4 , you believe your firm's free cash flows will grow at a rate of 4%, in perpetuity. Find the "horizon value" of this project and the present value of this horizon value. What is the netpresent value of your firm's investment in knife manufacturing? Be sure to include the total value of the first four years, and the (appropriately discounted) horizon value. Suppose that after next year, your firm's free cash flows will grow by 20%,15%, and 15% in years 2-4, respectively. Suppose also that this year (year zero) your firm will have to make a capital expenditure of $40 million. What is the net present value of your firm's project over its first four years (i.e., years 04 )? In calculating this, use the WACC you calculated previously as our discount rate. Next year, the company will generate pre-tax profits of $22 million, on which it pays taxes of 20%. Your firm will have a depreciation expenditure next year of $8 million, and will increase its net working capital by two million. What will be your firm's free cash flow next year