Below you have forecasted cash flows and other relevant data for a company, Govlt, that does Information Technology (IT) work for the federal government. Assume that GovIT's WACC is 18.9% and that it receives its cash flows evenly over the course of the year. Use this information to answer the questions below: GovIT Discounted Cash Flow Analysis (Income Approach) GovIT Other Selected Data as of December 31, 2020 Forecasted Forecast Basis 2020 2021 2022 2023 2024 2025 Income Statement Items Revenue EBIT EBITDA Net Income $27,237,526 $345,243 $361,343 $345,243 27,237,526 39.6% 29,416,528 8.00% 31,181,520 6.0% 33,052,411 6.0% 34,374,507 4.0% 35,405,743 3.0% 35.7% 26,111,477 27,678,166 29,338,856 30,512,410 31,427,782 88.8% 24,056,348 88.3% 3,181,178 11.7% 2,819,835 10.4% $3,755,535 $28,000 $2,219,693 Balance Sheet Items Cash & Equivalents Debt Total Equity (Common Stock + Retained Earnings) 3,305,051 11.2% 2,432,637 8.3% 3,503,354 11.2% 2,578,595 8.3% 3,713,555 11.2% 2,733,311 8.3% 3,862,098 11.2% 2,842,643 8.3% 3,977,961 11.2% 2,927,923 8.3% 8.3% Other Perpetuity Growth Rate WACC 2.50% 18.90% 0.0% Revenues, Net: % Growth Revenue CAGR (2018-2020) Cost of Goods Sold % Revenue Gross Profit % Revenue Operating Expenses (less Interest, Dep. & Amort): % Revenue Other Income / Normalization Adjustments % Revenue EBITDA % Margin Depreciation & Amortization: % Revenue EBIT % Margin Taxes: NOPAT Plus: Depreciation & Amortization: Less: Capital Expenditures: Less: Inc./(Dec.) in Net Working Capital 0.1% 0.0% 361,343 1.3% 16,100 0.1% 345,243 1.3% 88,866 256,377 16,100 0.0% 872,414 3.0% 25,353 0.1% 847,061 2.9% 218,034 629,028 25,353 (25,353) 0.0% 924,759 3.0% 26,874 0.1% 897,885 2.9% 231,116 666,769 26,874 (26,874) 0.0% 980,244 3.0% 28,486 0.1% 951,758 2.9% 244,982 706,775 28,486 (28,486) 0.0% 1,019,454 3.0% 29,626 0.1% 989,828 2.9% 254,782 735,046 29,626 (29,626) 0.0% 1,050,038 3.0% 30,515 0.1% 1,019,523 2.9% 262,425 757,098 30,515 (30,515) 25.7% 0.1% 0.0% (105,265) 377,742 629,028 666,769 706,775 735,046 757,098 Unlevered Free Cash Flow Terminal Value Total Free Cash Flow 629,028 666,769 706,775 735,046 757,098 Normal Discount Period Mid-Year Discount Period 1.00 0.50 2.00 1.50 3.00 2.50 4.00 3.50 5.00 4.50 Calculate the Terminal Value Calculate the Equity Value