Theaccumulatedlossesoverthefirst nineyears shieldthe
firmfrompayingtaxesuntilthetenthyear.Afterthatpoint,
we assumed a marginal tax rate of 35%.
18
Finally,we estimatedfreecash flowsto thefirmwith our
assumptionsaboutcapitalexpenditures andworking capital
(in millions of dollars):
Thefirmusesdebtliberallytofundtheseinvestmentsandhad
bookvalueofdebtoutstandingof$7,647millionattheendof
2001.Weestimated amarket valueforthedebtof $4,923
million.