An analyst has provided you with the following actual financial information developed from the reformulated financial statements of Nanaimo Ltd. for the year 2020, and then a set of forecasted financial information for the two-year period, 2021 2022:

Operating Profit Asset Year Sales Margin after tax Turnover 2020 Actual $100,000 0.25 2.0 2021 Forecast $125,000 0.23 1.9 2022 Forecast $135,000 0.20 1.8 In conjunction, the analyst has also provided you with the following additional information: the forecasted growth rate in operating income after tax (OI) after 2022 is 2.5% the firm's net borrowing cost (NBC) after tax is 3% the firm's weighted average cost of capital is 9% Clearly, based on their forecasts, the analyst is relatively pessimistic regarding Nanaimo's future profitability. Alternatively, you are somewhat more positive, believing that Nanaimo can maintain both its operating profit margin and its asset turnover ratios at their 2020 levels during both 2021 and 2022. However, you are somewhat more pessimistic about the firm's prospects after 2022 and as a result, you believe that the appropriate terminal growth rate for Nanaimo's operating income after tax is only 1%. Given this information, which of the following statements is TRUE? O 1. Based on the information provided, it is not possible to estimate Nanaimo's overall firm value O 2. Your estimate of Nanaimo's overall firm value will be the same as the analyst's estimate 3. Your estimate of Nanaimo's overall firm value will be lower than the analyst's estimate O 4. Your estimate of Nanaimo's overall firm value will be higher than the analyst's estimate