1. Maxwell is executing a major growth strategy that uses the following projections: (30 points)

• Free Cash flow in Yr. 1 is -$10 million; Yr. 2 is $20 million; Yr. 3 is $35 million; After 3 years, free cash flow will grow at approximately 5%.
• Maxwells WACC remains at 11% and no new stock or debt were issued;

Based on the above what is:

1. The present value of operations
2. What is the estimated annual value?
3. What is the estimated intrinsic value of Maxwells equity on a price per share basis?

Excel Required for problem