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Projected Year: 1 2 3 4 5 6 7 Net Capital Spending 1 . 8 0 1 . 9 0 2 . 2 0 2

Projected Year: 1234567
Net Capital Spending 1.801.902.202.162.303.003.25
Depreciation 0.500.750.900.951.101.251.50
EBIT 2.503.504.104.505.106.007.10
Change in NWC 0.200.250.300.400.600.701.10
For ABC Co.,the projected cash flow components (in $mil) during the projection period are as stated. Marginal tax rate is 35% and WACC is 10%. EV/EBITDA Exit multiple is 9x. Using mid-year convention method:
Based on the assumptions above, what is the Enterprise Value for ABC Co ?(7.5 Points)

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