Following is the five-year forecast for SKS Manufacturing. (Counts 4 Points in total)

$ millions

2018 2019 2020 2021 2022

EBIT 5500 5550 5700 6010 6030

Capital Expenditures 400 450 500 500 500

Changes in Working Capital 40 100 (20) (25) 10

Depreciation 50 60 100 120 130

Part A. Assuming a tax rate of 38%, calculate SKS projected free cash flow each year. (counts 2 points)

2018 =

2019 =

2020 =

2021 =

2022 =

NPV of 2018 2022 Cash Flows (assume a 12% discount rate) = ____ ___________