Determine firm value on December

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Question - An analyst predicts free cash flows of $2,000 in 2021 and $3,000 in 2022. The analyst also computes the terminal value of free cash flows on December 31, 2022 as $20,000. Determine firm value on December 31, 2020, given the following present value factors: n = 1, i = 6% is .9434; and n = 2, i = 6% is .8900.

a. 25000

b. 2670

c. 22357

d. 17800

Reference no: EM132700572

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