Depending upon the number of significant digits you round to your answer may be slightly different from any of the choices below.

a. $11,278.24 b. $19,159.69 c. $14,986.79 d. $14,805.65 e. $15,792.80

QUESTION 1 SKS Manufacturing Following is the five-year forecast for SKS Manufacturing: (all amounts in Smillions) 2019 2020 2021 2022 2023 EBIT Capital Expenditures (Capex) $500 $500 $500 $500 $500 Changes in Working Capital $40 $100 $(20) $(20 $10 Depreciation $5500 $5600 $5800 $6010 $6400 $50 $60 $100 $120 $150 Assuming a tax rate (t) of 21%, calculate SKS free cash flow for each year. Interest expenses are zero.. Assume a 12% discount rate. NVP (2019 -2023)insert answer in Question 1 Below) ASSUME THAT 2019 is Year 1, NOT YEAR O. ITS A 5 YEAR FORECAST Calculate the Total Net Present Value of the Five Year Cash Forecast for SKS Manufacturing. Choose best answer from the list below. All answers are in $millions. HINT: To correctly answer this problem it's important that you use the free cash flow equation that approximates a firm's annual cash flow. The equation is: FCF EBT (1-t) capital expenditures (capex) depreciation +/- change in working capital. EBT is earnings before taxes. You apply this formula to each year in the problem then discount the results for each year back to the present to get the NPV. Note that you subtract working capital if working capital increases during the year and you add working capital if working capital decreases during the year. This is the same logic that used in applying the indirect method to determining a cash flow statement. So lets say the change in working capital is (30). This indicates that working capital decreased during the year so you add it in the free cash flow formula. If working capital increased by 30 then you would subtract it