Problem Counts 7 Points Fraiser Products is a maker of authentic metal toys sold in elite Toy Stores and by catalog in the US and Western Europe. Frasier Products was started in January 2018 and a Venture Capital firm that has expressed an interest acquiring the company. Fraiser's CFO has developed a set of financial projections which are summarized in the table below (all amounts are in $000). EBIT Capital Expenditures 2020 2022 2023 2024 2025 2026 2021 $500 $400 $400 $1,700 $2,800 $4,200 $4,500 $400 $600 $1000 $1000 $800 $800 $900 Changes in Working Capital Depreciation $400 $400 $200 $100 $100 ($100) $(100) $80 $160 $205 $210 $220 $230 $230 Beginning after year 2026 the annual growth in EBIT is expected to be 2.70%, a rate that is projected to be constant over Fraiser's remaining life as an enterprise. Beginning after 2026 Frasier's capital expenditures and depreciation are expected to offset each other (capex - depreciation = 0) and year to year changes in working capital are expected to be zero (working capital levels remain constant year over year). For discounting purposes consider 2020 as year 1. Assume a tax rate of 21% and a cost of capital of 7.25%