Question 13 You have prepared the following pro forma income statement for a company you want to value (everything is in million dollars). The depreciation reflects a capital expenditure of $120 million that occurred at t=0 and that will be depreciated straight line over 4 years starting in year 1. Year 1 2 31 Sales 120 120 120 1201 Cost 30 30 30 30 EBITDA 90 90 90 90 Depreciation 30 30 30 30 EBIT 60 60 60 60 Income tax (30%) 18 18 181 18 Net Income 42 42 42 42 Assume that: o Sales are expected to remain $120 million forever, and the cost is expected to remain 25% of sales. The level of net working capital is expected to be 30% of sales, forever. The company is not expected to have any capital expenditures in the future. The company is all equity and does not have excess cash. The unlevered cost of capital is 10%. 1. What is the free cash flow in year 4 (in million dollars)? (Select) 2. What is the continuation value in year 4 for cash flows after year 4 (in million dollars)? Select