The Sanford Software Co. earned $20 million before interest and taxes on revenues of $60 milion last year Investment in fixed capital was $12 million, and depreciation was $8 million. Working capital investment was $3 milion. Sanford expects earnings before interest and taxes (EBIT), investment in fixed and working capital, depreciation, and sales to grow at 12% per year for the next five years. After five years, the growth in sales, EBIT, and working capital investment will decline to a stable 4% per year, and investments in fixed capital and depreciation will offset each other. Sanford's tax rate is 40%. Assume the weighted average cost of capital (WACC is 11% dring the high growth stage and 8% during the stable stage. The calculation of FCFF in years i through 5 is shown in the following table: saved 84.30 28.10 16.86 11.24 94.41 1.47 18.88 105.74 35.25 60.00 20.00 EBIT (1- 12.00 8.00 67.20 22.40 13.44 8.96 3.44 75.26 25.09 15.05 10.04 EBIT 14.10 21.15 8.88 4.72 3.76 4.21 The value of the firm using an FOFF model is closest tor $149.04 $156.40 5265.17 S270.35 Nothing to Save 6 8