Traver-Dunlap Corporation's has a 15% weighted average cost of capital (WACC). Its most recent sales were $980 million and its total net operating capital is $970 million. The following shows estimates of the forecasted growth rates, operating profitability ratios, and capital requirement ratios for the next three years. All of these ratios are expected to remain constant after the third year. Use this information to answer the following questions. Estimated Data for Traver-Dunlap Corporation Forecast Annual sales growth rate Operating profitability (NOPAT/Sales) Capital requirement (OpCap/Sales) Tax rate 20% 12% 80% 35% 2 6% 10% 80% 35% 3 6% 10% 80% 35% a. Use the data to forecast sales, net operating profit after taxes (NOPAT), total net operating capital (OpCap), free cash flow (FCF), growth rate in FCF, and return on invested capital (ROIC) for the next three years. What is the FCF growth rate for Year 3 and how does it compare with the growth rate in sales? What is the ROIC for Year 3 and how does it compare with the 15% WACC? (20 points) Current 0 $980 Forecast Year 2 1 3 $970 Sales Net operating profit after taxes Total net operating capital FCF = NOPAT Investment in Op Cap Growth in FCF ROIC = NOPAT/OpCap