Calculate the terminal value

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Webster Global Parnters (WGP) is evaluating an investment in Pulang, SA., a distributor of home appliances. As with any venture capitalist, they seek to sell out after 5 years. WGP estimates a required rate of return of 9.4%. After five years the growth rate is project to be 4.9% per year. Free cash flow in year 5 is expected to be $137 million. Pulang is expected to be sold at its terminal value. Calculate the terminal value.

Reference no: EM131603565

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