easyAir plc is an airline. It has 20 million ordinary shares currently trading on the stock market at a price of 8.64 each. It also has debt of 50 million. Free cash flows for its next accounting period are forecast to be 15 million. This figure is expected to increase by 3 million pa for each of the next four years after which it will level off at 30 million for 10 years. Forecasts after this period are not thought to be reliable. Given that you seek a return of 6%, would you invest in easyAir plc at the current share price?

State any assumptions that you have made in arriving at your answer.