Solution-Current value of operations

Current value of operations

Reference no: EM131318264

A company forecasts free cash flow next year to be $4 million, $8 million in two years, and $12 million in 3 years. Thereafter, free cash flow is projected to grow at a constant rate of 3% per year forever. If the overall cost of capital is 15%, what is the current value of operations, to the nearest million?

Reference no: EM131318264

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Current value of operations

Reference no: EM131318264

Reference no: EM131318264

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