Explain your terminal growth formula

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Terminal Value Analysis: If DuPont chooses the "growth" strategy, we will assume that the production will continue indefinitely. Therefore, you must come up with an approach to calculating the terminal value. You will assume a terminal, perpetual growth rate of cash flows (it is up to you - justify your choice). Explain your terminal growth formula (effectively calculating the present value of all of the perpetual stream of cash flows after 1985), properly accounting for the time-delay.

Reference no: EM133578651

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