Weighted average cost of capital

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Vasudevan Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions? Year: 1 2 3 Free cash flow: -$20 $42 $45

Please, explain all solution in details. Note that it is in class task and excel is prohibited to use so I have to understand all steps and do them by hand.

Reference no: EM131016743

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