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Free Cash Inc. is anticipated to make earnings before interest and taxes ( EBIT ) of $ 2 5 , 0 0 0 , $

Free Cash Inc. is anticipated to make earnings before interest and taxes (EBIT) of $25,000, $30,000, and $40,000 in each of the next three years. Depreciation is estimated to be $3,500, $4,000, and $4,500 in each of th next three vears. Capital expenditures are estimated to be $8.000 $8.500. and $9.000 in each of the next three years Incremental increases in working capital requirements are estimated to be $2.500, $3,000, and $3.500 in each of the next three years. Free Cash Inc.s tax rate is 38 percent. Estimate Free Cash Inc.s year 3 terminal value by applying an EV/EBITDA multiple of 8.0 times to year 3 EBITDA

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