Use the following to answer questions 27-31. Friends in Low Places has decided world domination would be a nice long-run goal. In order to get there, they first have to buy up all of the competition. The owners of Duff Beer are interested in selling their brewery and you have been hired to help FLP decide how much they should pay to acquire the business. The firm has already provided you with forecasts of their financial data for 2017. The appropriate discount rate (WACC) is 12%. Round answers to the nearest dollar. Forecasted Financial Data 2017 What will be Duff Beer's free cash flows in 2017? A) $120.000 B) $185,000 C) $205,000 D) $215,000 28. You have forecasted Duffs free cash flows as follows: 2018 $205,000 2019 $225,000 2020 $275,000 After 2020, the firm is expected to grow at a rate of 4% per year that is characteristic of the industry. What is the firm's terminal value? A) $174,767 B) $2,275,000 C) $3,575,000 D) $4,000,000 29. What is the firm's enterprise value? A) $3,575,000 B) $890,000 C) $4,465,000 D) $2,935,498 What is the market value of Duff Beer's common equity? A) $2,455,498 B) $3,035,498 C) $2,935,498 D) $2,271,977 The owners of Duff Beer are not willing to sell their business for less than $3 million. Should Friends in Low Places move forward with the purchase or pursue world domination through some other firm acquisition? A) Yes B) No