Here are the projected cash flows for the firm for the next 3 years, which are expected to be high growth years (with a growth rate of 10%), and for year 4, which is assumed to be the first year of stable growth (when the growth rate is expected to drop to 3%).
Base 1 2 3 Terminal
EBIT (1-t) $1,132 $1,165.96 $1,200.94 $1,236.97 $1,274.08
+ Depr 414 426 439 452 466
- Cap Ex 316 325 335 345 356
- Chg in WC -113 -101 -90 -78 0
FCFF $1,368 $1,395 $1,422 $1,384
Assume a cost of capital and value the firm