Autonomous Vehicles, Inc. has some new products that it expects to lead to high growth in the near future. It has given analysts the following forecasts for the next three years:

2020 2021 2022

Depreciation 39,450 55,285 71,080

EBIT 329,062 381,712 434,363

Investment in Operating Assets 91,650 66,300 29,250

The firms debt has a current market value of $900,000 and it has $75,000 in marketable securities. There are 500,000 common shares outstanding. The expected tax rate is 25%, and the WACC is estimated to be 10%.

a. Calculate the free cash flow for each of the next three years.

b. After 2022 free cash flow growth is expected to slow to 7% per year perma-nently. What is the value of the stock today?

c. Without the new products, free cash flow in 2020 would be $100,000 and it would grow at 7% per year forever. What is the value of the stock if the new products arent introduced?

Please answer all parts of question using excel, thumbs up given