\( \square \) caments
The information below applies to the 5 questions that follow. Mudflap Airlines anticipates:
- EBIT of \( \$ 140,000, \$ 150,000 \) and \( \$ 160,000 \) in each of next 3 years
- Depreciation of \( \$ 14,000, \$ 15,000 \), and \( \$ 16,000 \)
- Capital expenditures of \( \$ 16,000, \$ 17,000 \), and \( \$ 18,000 \)
- Incremental increases in working capital requirements of \( \$ 5,000, \$ 7,000 \), and \( \$ 9,000 \)
- Tax rate of \( 25 \% \)
- Current value of debt, VD, of \( \$ 700,000 \)
- WACC \( 9.42 \% \)
- Assume present value (time 0 ) of Mudflap's terminal value is \( 1,334,869 \)
Difos