You are evaluating Ingrids Igloos, a producer of housing in cold climates. Sales for Ingrids Igloos are expected to be $140 million next year while the cost of goods sold is expected to be 65% of sales. SG&A expenses are expected to be $12 million. Depreciation is expected to be $11 million next year while capital expenditures are expected to be $15 million. Ingrids Igloos will spend $4.5 million to increase its level of inventory next year and suppliers will provide Ingrids Igloos with $2.75 million in additional supplier credit. The tax rate is 21%.

A.) What are the Free Cash Flows for Ingrids Igloos for next year?

B.) If Ingrids Free Cash Flows are expected to grow by 3% per year forever and the discount rate is 11%, how much is Ingrids Igloos worth today?