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Calculate cash investment

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Question - At the end of 2012, you receive from an analyst the following forecast (in millions) for a firm with an estimated enterprise value of 7900 million:

 

2013

2014

2015

Cash flow from operation

1450

1576

1718

Cash investment

1020

1124

?

The required return for operations is 10 percent and it is estimated that the free cash flow will grow at 4% after 2015. Calculate cash investment for 2015.

Reference no: EM132504719

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