3. You are asked to compute the free cash flows of a company for the next 5 years. You receive the following relevant selected information from the incremental earnings forecast: 5 0 Sales Costs of Goods Sold Unlevered Net Income -6.10 Depreciation 3 1 2 25.74 25.25 24.96 15.44 15.15 14.98 7.42 0.64 4 25.69 15.41 7.90 7.37 5.90 6.84 0.64 0.64 0.64 0.64 In additon, you know that 15% of sales and costs of goods sold must be allocated to the working capital. The weighted average cost of capital is 7%. The company expects a growth rate of its free cash flows of 2% after year 5. a) Compute the free cash flows of the company! b) What is the estimated firm value of the company using the Discounted Free Cash Flow Model?