The project will earn $2000 before interest, depreciation, and taxes at the end of 2019 (Year 1). From 2019 (Year 2) to 2020 (Year 3), this number is expected to grow by 10% with steady-state growth from 2020 onwards of 2%. Thus, 2019 (Year 1) EBITDA = $2000 2020 (Year 2) EBITDA = $2200 2021 (Year 3) EBITDA = $2244 The interest expense will be $60 per year. 2018 Year-end (Year 0) Balance Sheet: Current Assets =$2400 Accounts payable=$1200 Net fixed assets =$2400 Long term debt=$850 Shareholders equity= $2750 Total assets=$4800 Total liabilities and equity=$4800. Investment in NWC will begin year 0 and is $1200 and will stay that way. CAPEX is 0 and will stay that way with straight line depreciation to 0 over 3 years. Asset Beta is 1 D/E ratio is .25. The new venture can expect to pay 7.0% on its debt before taxes. Interest expense of $60/year is 7% of $850 in long-term debt. Tax rate is 40%. Risk free rate is 7%. Expected return on the market is 15%. Calculate the levered beta- Estimate the WACC- Calculate total free cash flow 2018-2020- Calculate NPV-