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How much she should be willing to pay

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Question - Michelle is the new CFO of an upcoming Venture Capital firm. She has a relatively large pool of resources available for investment. The weighted average cost of capital for her firm is 14%. She is evaluating a portfolio that has a current net free cash flow of $11.6milllion. All the analysis indicates the portfolio is expected to grow at an annual rate of 8%. How much she should be willing to pay (in $ million) for purchasing this portfolio?

Reference no: EM133119472

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