Please look at attached photo. A step by step how-to is what I am looking for, along with equations that are useful

16. BFIN321 1 group is can ying out a set of analysis to decide whether to start a new company called Stillman Starters Inc (SS). If we start SS in 2019, SS will have no sales in 2019. SS is expected to have sales of $100 million in 2020 and the sales will grow at the rate of 30% in 2021; 20% in 2022; 10% in 2023; and 4% from 2024 on forever. We expect that net income will be 10.05% of sales. We expect that increases in net working capital requirements to be 8% of any increase in sales, capital expenditures to be 3% of sales, and depreciation expenses to be 2% of sales. The weighted average cost of capital is estimated to be 12%. To start the company, we need to invest $80 million at the end of 2019. Should we start the new company? If we are planning for an IPO at the beginning of 2020 to sell all the equity for 30 million shares, what is the fair price for each share of our company stock? Here are the questions to help us go through the procedure. . What is the free cash flow in year 2020? b. What is the terminal firm value at the end of 2024? C. What is your estimate of the firm value at the end of 2019? We can fill in the missing numbers in the following table. Stillman Starters Inc. Project Free cash flow forecast ($million) Year 2019 2020 2021 2022 2023 2024 2025 Sales 0.00 100.00 Sales growth rate 0.30 0.20 0.10 0.04 0.04 NI ( 10.05% of sales) Depreciation Capital Expenditures Increase in NWC Free cash flow More specifically, the net income in 2020 is calculated as the depreciation in 2020 is calculated as the capital expenditure in 2020 is calculated as the increase in the net working capital in 2020 is calculated as 7the free cash flow in 2020 is calculated as The terminal firm value at the end of 2024 is calculated as The total firm value at the end of 2019 is calculated as The NPV of the project before we make any investment is We (should or should not) start the new company. CO