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Below you will find the operating cash flows (Free Cash Flow) for ABC Corp. The company has a 12% weighted average cost of capital. Assuming

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Below you will find the operating cash flows (Free Cash Flow) for ABC Corp. The company has a 12% weighted average cost of capital. Assuming that you are using a perpetuity approach to analyze ABC Corp, what is the Enterprise Value using a terminal growth rate of 3%? Dollars in millions Projected FYE 12/31 2022 2023 2024 2025 2026 Sales 500.00 560.00 627.20 702.46 786.76 -Cash COGS and SG&A 400.00 448.00 501.76 561.97 629.41 EBITDA 100.00 112.00 125.44 140.49 157.35 -Tax basis D&A 14.10 16.20 18.40 20.60 18.40 Operating Income 85.90 95.80 107.04 119.89 138.95 -Taxes 21.48 23.95 26.76 29.97 34.74 Net Operating Profit After Taxes 64.43 71.85 80.28 89.92 104.21 +Depreciation & Amortization 14.10 16.20 18.40 20.60 18.40 -Capex for PP&E 17.20 19.26 21.58 24.16 27.06 2.20 2.46 2.76 3.09 3.46 -Working Capital Changes Operating Cash Flow 59.13 66.32 74.34 83.26 92.09 Cost of Capital Present Value of Cash Flows $922.76 million $1,104.17 million $861.75 million $1,025.48 million

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