Summit Energy is an alternative energy producer. Your hedge fund is interested in investing into the company. As an analyst, you need to estimate firm value and its price per share using the NPV method and report it to the energy portfolio manager. So far youve partially forecasted its earnings for 2020-2022 (numbers are in millions).

	Actual earnings			Forecasted earnings
	2017	2018	2019	2020	2021	2022
Revenues	25,137	25,650	24,368	25,220	26,481	26,746
Cost of goods sold	18,375	17,894	19,750	21,230	20,381	19,973
Gross Profit	6,762	7,756	4,618	3,990	6,101	6,773
SG&A	2,235	2,110	2,050	2,200	2,200	2,200
Depreciation	2,000	2,000	2,000	2,000	2,000	2,000
EBIT
Tax expense (25%)
Net income

Assume that annual net working capital represents 10% of revenues. In 2021 Summit plans to purchase new equipment for its new generation of wind mills for $200 million. No other purchases are planned in 2020 or 2022.

Please enter the answer in the following format: XX,XXX

A. Calculate Summit's free cash flow in 2022.

B. Summit Energys beta is 1.7. Calculate its expected rate of return if the market portfolio return is 12% and the risk free rate is 4%

C. Calculate Summits terminal value if free cash flows are expected to grow 2% perpetually starting 2023. Use its expected rate of return from question B as a discount rate.

D. Calculate Summits NPV as of 2020. Use its expected rate of return from question B as a discount rate