In 2018, MC Inc. has an EBIT of $125M, and $15M of depreciation. The tax rate is 40%. The net capital spending is $20M. The net working capital is $20M in 2018, and $40M in 2017. The predicted growth rate is 10% in the next three years. Starting in the fourth year, the growth rate will be 5% indefinitely. The firm has $400M (market value) in debt, and 100M shares outstanding. Beta of MC Inc. is 1.5. Market risk premium is 7%. Risk free rate is 5%. The WACC of the firm is 10% Question 22 2 pts What is the adjusted cash flow from asset in 2018? Edit View Insert Format Tools Table 12pt Paragraph BIU E Da . ACF - EBIT(1-T) + DEP - NWC - CAPEX EBIT = earnings before interest and tax T= tax rate DEP depreciation NWCInc/Dec in net working capital from the last year CAPEX = capital expenditure ACF - $125M1-0.40) + $15M - ($40M-$20M) - $20M $75M $15M $20M -$20M . Question 23 2 pts What is the predicted adjusted cash flow from asset in 2019? Edit View Insert Format Tools Table 12pt Paragraph BI U Avev pro > O words In 2018, MC Inc. has an EBIT of $125M, and $15M of depreciation. The tax rate is 40%. The net capital spending is $20M. The net working capital is $20M in 2018, and $40M in 2017. The predicted growth rate is 10% in the next three years. Starting in the fourth year, the growth rate will be 5% indefinitely. The firm has $400M (market value) in debt, and 100M shares outstanding. Beta of MC Inc. is 1.5. Market risk premium is 7%. Risk free rate is 5%. The WACC of the form is 10% Question 22 2 pts What is the adjusted cash flow from asset in 2018? Edit View insert Format Tools Table 12pt Paragraph ! Tv +++ ACF = EBIT(1-T) + DEP - NWC - CAPEX EBIT - earnings before interest and tax T-tax rate DEP = depreciation NWC = Inc/Dec in net working capital from the last year CAPEX = capital expenditure ACF - $125M11-0.40) + $15M - ($40M-$20M) - $20M -575M 515M $20M-520M - $90M 70 words