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Ryder System is a full-service truck leasing, maintenance, and rental firm with operations in North America and Europe. The firm forecasts the following financial statements

Ryder System is a full-service truck leasing, maintenance, and rental firm with operations in North America and Europe. The firm forecasts the following financial statements in North America and Europe. The firm forecasts the following financial statements for 2018 and 2019 (in millions):

2018 2019

Revenues $5,192.00 $5,400.0

Operating Expenses $3,768.5 $3848.0

Depreciation $573.5 $580.0

Interest Expenses $170.0 $172.0

Taxes $652.1 $670.0

Net Income $117.9 $130.0

Increase in Net Working Capital $57.2 ($462.0)

The firm estimates capital expenditures of $800 million in 2018 and $850 million in 2019. What is the value of the firm today if we assume that the free cash flows will grow at 4.5% per year from 2020 onward and the firm has a weighted average cost of capital of 16.5%?

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