Find the value of the firm assuming the debt levels are constant using APV method. Note this is a finite period problem Year Forecast 0 1 2 3 4 5 6 7 Free cash flows (without tax sheilds) 3.5 3.5 3.6 3.4 5.9 6.1 Z 6.8 Base-case PV of company 1 50 50 50 50 50 50 50 50 Debt Interest Interest tax shield PV Interest tax shields APV Tax rate, Opportunity cost of capital, WACC, (to discount horizon valueto year 6) Long-term growth forecast, % Interest rate, % (years 1-6) 25 10 8 4 8