Intro Granite Road and Building is a national construction company. In the most recent financial year, the firm had after-tax operating income of $23 million, depreciation of $7 million, and capital expenditures of $12 million. Non- cash working capital was $20 million at the end of the year. The firm is growing 12% per year for the next 4 years. After year 4, the firm's capital expenditures will decrease to 150% of depreciation, and the growth rate will drop to 4% (for operating income, depreciation and noncash working capital). Its cost of capital is 15% and its tax rate is 30%. Part 1 What is the free cash flow next year (in $ million)? 8.5 Correct FCF = EBIT(1 t)(1 + 9) (CapEx Depr.0) (1 + g) NWCo g = 23(1 + 0.12) (12 7)(1 + 0.12) 20.0.12 17.76 (million) - - | Attempt 4/99 for 10 pts. Part 2 What is the free cash flow in year 5 (in $ million)? Attempt 8/99 for 10 pts. 1+ decimals Submit