West Coast Widget Maker (WCWM) is a producer of widgets on the west coast. The firm is all equity financed and is not publicly traded. East coast widget Maker (ECWM), a producer of widgets with operations on the east coast only, is considering acquiring WCWM. In particular, ECWM is interesting in knowing the maximum price that it should consider bidding for WCWM's assets and operations (the enterprise). ECWM is publicly traded, is all equity and has a RA of 16% and a corporate tax rate of 20%. ECWM's CFO estimates that WCWM's expected after cash flows its unlevered free cash flows) will be as follows. (you need to complete rows (2) and (3), figure out the correct sign for rows (4) - (7) and complete row (8)). The CFO also estimates that these after tax cash flow will grow at an annual rate of 2.3% after year 5. Under this set of assumptions, what is the maximum bid that ECWM should consider? 2 3 1 5 2620 3410 3715 4045 4330 (1) Operating Income 2) Tax on operating Income @ 20% "13) Unlevered Net Income 74) Depreciation (5) Capital Expenditures 16) Change in net working capital (7) Proceeds from asset sales 425 524 -200 3500 450 518 -250 1800 450 525 205 0 450 535 225 0 450 554 254 0 18) Free Cash Flows