Pleаse dоwnlоаd аnd оpen this Excel file. You can only use this Excel file for the exam. You are not allowed to open any other Excel file. Final Exam Spring 2026 AC.xlsx You are hired by Flagstone to decide whether it is profitable to purchase a private firm, ROBOTUSA Corporation. The firm has outstanding debt of $5 million and has excess cash of $9.466 million and EBITDA of $6.56 million. Based on its business, the comparable companies are A, B and C. The ratios of P/E, Enterprise Value/Sales, and Enterprise Value/EBITDA ratios for each of the comparable firms are provided in table 1. Your manager wants to know how much money can Flagstone make after buying the firm. You are given the following information: The sales and costs forecasts are provided in Table 2. Income statement is in Table 3. The tax rate is 20% for 2025 and is expected to be at this level for the foreseeable future. The depreciation expense is forecasted to be $2,000,000. The Capital expenditure equals the depreciation cost. To improve the operational efficiency, Flagstone hopes to reach the following goals on the working capital in Table 4 from 2026. To increase the firm value, Flagstone will pay off the existing debt and take on $60 million in new debt. Flagstone believes that the debt level is safe. The interest rate for the new debt is 7% per year. After five years, Flagstone plans to sell ROBOTUSA and will estimate the terminal (continuation) value using the enterprise value-to-EBITDA multiple approach, applying a multiple of 10. The unlevered cost of capital will be 10.5%. Questions: From Table 1, the equity value based on the lowest EV/EBITDA ratio from its comparable firms is _______________(1 point)