The chosen company is Waste Managemennt

The firm is looking to expand its operations by 10% of the firms net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firms balance sheet.)

The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipments cost.

The annual EBIT for this new project will be 18% of the projects cost.

The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project.

The hurdle rate for this project will be the WACC that you are able to find on a financial website, such as Gurufocus.com.

Please provide calculations that convert the projects EBIT to free cash flow for the 12 years of the project.

Waste Management Inc (NYSE:WM) WACC %:6.08% As of Today

WACC CAN BE FOUND HERE https://www.gurufocus.com/term/wacc/WM/WACC-/Waste-Management-Inc

BALANCE SHEET CAN BE FOUND HERE https://www.nasdaq.com/symbol/wm/financials?query=balance-sheet

Income Statement Balance Sheet cash Flow Financial Ratios Annual Income Statement (values in 000's) Period Ending Current Assets Get Quarterly Data Trend 12/31/201712/31/2016 12/31/2015 12/31/2014 Cash and Cash Equivalents Short-Term Investments Net Receivables $22,000 $32,000 S39,000 S1,307,000 50 $0 S0 50 $2,374,000 $2,132,000 $2,094,000 1,937,000 Inventony IIII $96,000 $90,000 S92,000 106,000 Other Current Assets 132,000 122,000 120,000 $176,000 Total Current Assets $2,624,000 $2,376,000 $2,345,000 3,526,000 Long-Tem Assets Long-Term Investments Fixed Assets $269,000 320,000 $360,000 $408,000 $11,559,000 $10,950,000 $10,665,000 $10,657,000 $6,247,000 $6,215,000 $5,984,000 $5,740,000 Goodwil III S547,000 591,00 III $583,000 407,000 Intangible Assets $477,000 S536,000 S0 S440,000 S526,000 S0 Other Assets Deferred Asset Charges S0 $0