Determining the terminal value of the firm cash flows

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Company A is expected to have an EBIT of $354,000 next year. Depreciation, the increase in net working capital, and capital spending, are expected to be $24,000, $2,000, and $33,000 respectively. All are expected to grow at 7 percent per year for 3 years. After year 4, the adjusted cash flow from assets is expected to grow at 3.2 percent indefinitely. The company's WACC is 9.2 percent, and the tax rate is 34%. What's the terminal value of the firm's cash flows?

Reference no: EM132440525

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