Rumour has it that Apex Industries is interested in buying your companys solar panel manufacturing operation. Your company is willing to sell if it can get the full value of this rapidly growing business. The problem is figuring out what the present value is. Brief projected financials for the venture are shown in Table 1 below.

a) The free cash flows for the manufacturing operation are projected to be negative for the first six years. Critically discuss why this may be a good or bad thing.

	Year
	1	2	3	4	5	6	7	8	9	10
	(Millions of Dollars)
Asset Value	10.00	12.00	14.40	17.28	20.74	23.43	26.48	28.07	29.75	31.54
Earnings	1.20	1.44	1.73	2.07	2.49	2.81	3.18	3.37	3.57	3.78
Investment	2.00	2.40	2.88	3.46	2.70	3.05	1.59	1.68	1.79	1.89
Free Cash Flow	-0.80	-0.96	-1.15	-1.38	-0.21	-0.23	1.59	1.68	1.79	1.89
Earning growth from previous period	20%	20%	20%	20%	20%	13%	13%	6%	6%	6%