All equity company generated no free cash flows

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An all equity company generated no free cash flows in 2005, 2006 or in 2007. In 2008, the EBIT of the company was 2.500.000€, amortization was 450.000€, and depreciation was 200.000€. During 2008 the company paid taxes at a rate of 40% and the net working capital increased by 100.000€. If the growth rate of the free cash flows from 2008 onwards is forecasted at 2.5%, the required return on equity is 10%, and the value of the company at the end of 2005 was 17.079.889, determine how much the company invested in fixed assets in 2008. Please show your work.

Reference no: EM131509978

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