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Franklin Building Supplies is expected to have an EBIT of $1,295,000 next year. Depreciation, the increase in net working capital, and capital spending are expected

Franklin Building Supplies is expected to have an EBIT of $1,295,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $48,000, $7,000, and $42,000, respectively. After next year, EBIT is expected to grow at 5 percent per year for the next 5 years. The other cash flow items are expected to grow at 7 percent after next year. After Year 6, the CFA* is expected to grow at 3.1 percent

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