Glacier LLC is a local manufacturer and distributor of Alaska-branded beverages and snacks, mostly around Denali national park and other parks in Alaska. It captures about 80% of tourists and visitors to the national and other parks in Alaska. However, the brand is also becoming very popular around the state and even outside the state where there is some great hype and attachment to the Pristine Alaska brand. PepsiCo Inc is considering buying the local beverage company in December this year with the hope of not only taking a leadership position in that niche market but also looking at catching the potential growth opportunities associated with the brand. Below is Glacier LLCs projected cash flow as provided by the Financial Analyst.

FCF	2023	2024	2025	2026	2027	Terminal Value
$million	20	23	24	25	27	300

(i) Assuming Glacier LLC has the same financial structure and risk profile as PepsiCo Inc, and using the 6.3% WACC your group calculated for PepsiCo Inc to discount the cash flows, what should PepsiCo Inc pay today to acquire Glacier LLC?

(ii) Assuming ASRC Beverages Alaska with a 70% Equity and 30% debt financial structure but same cost of equity and cost of debt as PepsiCo Inc, wants to acquire Glacier LLC, what should ASRC Beverages pay today to acquire Glacier LLC?

(iii) If Glacier LLC actually bottles and sells only water, and does not have the same financial structure and risk profile as PepsiCo Inc, will you still use the WACC calculated for PepsiCo inc to evaluate PepsiCo Incs acquisition price offer for Glacier? Explain your position.