Analysts following Howard and Castro, Inc. a all-equity financed firm, have projected the following financial information:

($ millions)
	2021	2022	2023	2024
EBIT	$140	$150	$160	$170
Fixed Assest Bought	40	50	55	60
Fixed Assest Sold	10	15	20	25
Change in Net Working Capital	20	30	35	40
Depreciation	30	35	40	50

In addition, they expect unversed cash flows to grow at 4% each year after year 2024. Howard and Castro, Inc is in the 34% tax bracket. The asset risk in the industry justified a required rate of return of 10%. The firm is planning leveraged recapitalization where it will issue debt to repurchased equity and target a set-to-value ratio of 28%. The cost of debt for the under the recapitalization is 6%

1. What is the unlettered Cash flows for the first 4 years?

2. What is the value of Howard and Castro, Inc BEFORE the announcement of the leveraged recapitalization (end of year 2020)? (this will be the firms unlevered value)

3. What is the value of Howard and Castro, Inc AFTER the announcement of the leveraged recapitalization (end of year 2020)? (this will be the firms levered value)

4. What is the NPV of all financing side-effects?