You are considering the acquisition of Pioneer Communications. Proforma financial information for Pioneer Communications is below; the appropriate discount rate for Pioneer Communications is 15%. After year 20, you will assume that the cash flow from year 20 will then grow at 3% per year for 5 years. For valuation purposes, you will ignore all cash flows from year 26 and beyond. The tax rate is 40%. Pioneer Communications Years 1-5 Year 6 Years 7-14 Year 15 Years 16-20 Sales 2,000 2,500 2,500 2,500 4,000 Depreciation 20 20 30 30 50 EBIT is assumed to be 60% of Sales. Interest 60 60 75 70 90 Capital Expenditures 0 800 0 1,000 0 Increases in Working Capital is 10% of the change in sales; invested the period before the sales increase Principal Payment 0 0 0 500 Using a DCF approach, what is the value for Pioneer Communications? You will assume Pioneer Communications debt if you acquire Pioneer Communications