please show the entire question and working process included the formula. no excel generated.Thank you.

Question 3 (a) (b) Ergo Unlimited's current year's free cash flow is $10 million. It is projected to grow at 20% per year for the next five years. It is expected to grow at a more modest 5% beyond the fifth year. The firm estimates that its cost of capital is 12% during the next five years and then will drop to 10% beyond the fifth year as the business matures. Estimate the firm's current market value. (6 marks) Best's Foods is seeking to acquire the Heinz Baking Company, whose shareholders' equity and goodwill are $41 million and $7 million, respectively. A comparable bakery was recently acquired for $400 million, 30 percent more than its tangible book value (TBV). What was the tangible book value of the recently acquired bakery? How much should Best's Foods expect to have to pay for the Heinz Baking Company? Show your workings. (4 marks) Carlisle Enterprises, a specialty pharmaceutical manufacturer, has been losing market share for three years since several key patents have expired. The free cash flow to the firm in 2002 was $10 million. This figure is expected to decline rapidly as more competitive generic drugs enter the market. Projected cash flows for the next five years are $8.5 million, $7.0 million, $5 million, $2.0 million, and S.5 million. Cash flow after the fifth year is expected to be negligible. The firm's board has decided to sell the firm to a larger pharmaceutical company interested in using Carlisle's product. It offers to fill gaps in its own product offering until it can develop similar drugs. Carlisle's cost of capital is 15%. What purchase price must Carlisle obtain to earn its cost of capital? (4 marks) (d) Chandler and Joey were having a discussion about which financial model to use for their new business. Chandler supports NPV and Joey supports IRR. The discussion starts to get heated when Ross steps in and states, "gentlemen, it doesn't matter which method we choose as they give the same answer on all projects." Is Ross right? Under what conditions will IRR and NPV be consistent when accepting or rejecting projects? (6 marks) (e) Monica and Rachel are having a discussion about IRR and NPV as a decision model for Monica's new restaurant. Monica wants to use IRR because it gives a very simple and intuitive answer. Rachel states that there can be errors made with IRR that are not made with NPV. Is Rachel right? Show one type of error that can be made with IRR but not with NPV? (5 marks) Question 3 (a) (b) Ergo Unlimited's current year's free cash flow is $10 million. It is projected to grow at 20% per year for the next five years. It is expected to grow at a more modest 5% beyond the fifth year. The firm estimates that its cost of capital is 12% during the next five years and then will drop to 10% beyond the fifth year as the business matures. Estimate the firm's current market value. (6 marks) Best's Foods is seeking to acquire the Heinz Baking Company, whose shareholders' equity and goodwill are $41 million and $7 million, respectively. A comparable bakery was recently acquired for $400 million, 30 percent more than its tangible book value (TBV). What was the tangible book value of the recently acquired bakery? How much should Best's Foods expect to have to pay for the Heinz Baking Company? Show your workings. (4 marks) Carlisle Enterprises, a specialty pharmaceutical manufacturer, has been losing market share for three years since several key patents have expired. The free cash flow to the firm in 2002 was $10 million. This figure is expected to decline rapidly as more competitive generic drugs enter the market. Projected cash flows for the next five years are $8.5 million, $7.0 million, $5 million, $2.0 million, and S.5 million. Cash flow after the fifth year is expected to be negligible. The firm's board has decided to sell the firm to a larger pharmaceutical company interested in using Carlisle's product. It offers to fill gaps in its own product offering until it can develop similar drugs. Carlisle's cost of capital is 15%. What purchase price must Carlisle obtain to earn its cost of capital? (4 marks) (d) Chandler and Joey were having a discussion about which financial model to use for their new business. Chandler supports NPV and Joey supports IRR. The discussion starts to get heated when Ross steps in and states, "gentlemen, it doesn't matter which method we choose as they give the same answer on all projects." Is Ross right? Under what conditions will IRR and NPV be consistent when accepting or rejecting projects? (6 marks) (e) Monica and Rachel are having a discussion about IRR and NPV as a decision model for Monica's new restaurant. Monica wants to use IRR because it gives a very simple and intuitive answer. Rachel states that there can be errors made with IRR that are not made with NPV. Is Rachel right? Show one type of error that can be made with IRR but not with NPV