Ulysses Inc., a publicly traded toy manufacturing company , is considering investing in a 5-year joint venture with Lowie Inc, a movie company, to produce animated movies. This joint venture will receive equal investment from both firms. You have been provided with the following information on the cost of equity and capital of the two companies: Ulysses Inc. Lowie Inc. Cost of equity 9% 12% Cost of capital 7.50% 10% The following are the projected cash flows for Ulysses' share of the joint venture: Time period (years) 0 1 2 3 4 5 Revenues $100 $110 $125 $140 $160 - COGS (includes depreciation) $40 $44 $50 $56 $64 Operating income $60 $66 $75 $84 $96 - Taxes $18 $20 $23 $25 $29 After-tax operating income $42 $46 $53 $59 $67 - (Cap ex - Depreciation) $80 $0 SO $0 - Change in working capital $5 $5 $5 $5 $5 Cash flow -$80 $37 $41 $48 $54 $62 Estimate the value of the joint venture to Ulysses (hint: the cost of capital/equity is determined by each firm having an equal share in the venture): 89.17 103.84 105.15 98.74 105.15