It is the end of 2017 and you are asked to value the XYZ corp. You have the following financials for this firm.

	2017	2018	2019	2020
Income Statement
Sales		1,500,000	2,000,100	2,400,000
COGS		1,200,000	1,600,080	1,920,000
Other Expenses (includes dep)		150,000	200,010	240,000
EBIT		150,000	200,010	240,000
Interest Expense		100,000	100,000	100,000
EBT		50,000	100,010	140,000
Tax		17,500	35,004	49,000
Net Income		32,500	65,007	91,000
Selected items of the balance sheet
NetPPE	80,000	100,000	133,340	160,000
AR	100,000	123,288	164,392	197,260
AP	120,000	147,945	197,270	236,712

The tax rate is 35%. You expect sales to grow at 4% from 2020 on. In addition, the cost of capital for this firm is 12%.

QUESTION BELOW:

part a.) What is the FCF for 2020?

part b.) What is the FCF in 2021?

part c.) Assume that FCF will grow at 4% starting from 2021. Compute the present value of the FCFs. What is the enterprise value?