Currently, Ljutic A/I Inc. has hired a consulting firm to estimate the size of the market and hence expected unit sales for its main product (E-toral application sensor). OAs work resulted in unit sales estimates of 418,331, 441,342, 468,769, 483,432, and 476,532 units respectively for the next five years conditioned on continued federal government approval and Ljutics adhering to an average sales price of $554 per unit for the first two years and $321 in years three, four, and five.

The results of an independent outside analysis by a leading market research firm determined that the company could manufacture its product line at a variable cost per unit expected to be $67.86 growing at 2.13% per year for 5 years while overall fixed costs are estimated to be $14,391,000 annually for the first year and then grow 3.98% annually thereafter.

The necessary capital expenditures are projected to be $31,673,500 upfront and due to the nature of the investments that Ljutic A/I Inc. makes, it is deemed by the IRS to be depreciated on the five-year MACRS schedule. In the terminal phase of growth, it is projected that investment strategy will morph into and likely change to that of a support structure for AI/AR opportunities closely aligned with cyber security applications as service revenues become more annuitized. This is expected to last another 5 years requiring an investment that will be straight line depreciated with an annual depreciation rate of $1,627,900.

Working capital to support sales is estimated to be 17.65% of yearly sales for 5 years. The marginal corporate income tax rate is expected to average 21.00% barring any changes to the corporate tax code and the projected annual growth rate of Free Cash Flow (FCF) in the terminal phase is expected to grow approximately 1.25% more than the current risk-free rate of return indefinitely.

Historically, the debt-equity ratio has averaged roughly 122% for which Ljutics current debt level is $79,889,950 with an average maturity of 5 years and an interest rate on the debt averaging 9.365%. With the use of regression analysis, the historical equity beta was calculated to be 2.187, while the risk-free rate of return is given as 4.146% and the market rate of return is assumed to be 11.20%. Currently there are 4,731,443 shares of common stock outstanding.

You have been hired by Ljutic A/I Industries, Inc. to determine the following items used in its financial analysis of the stock price:

1. Operating Cash Flow: First 5 years
2. Free Cash Flow: First 5 years
3. Asset Beta (Industry Beta)
4. Discount Rate
5. Asset Value of the firm
6. Equity Value of the firm
7. Stock Price
8. Recommendations- stock price maximization
9. Data Entry

Having trouble with the operating cash flow portion, please show in spreadsheet