What is its value of operations as of the end

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Problem 1: A company's free cash flow for 2017 is -$15 million. The company forecasts its 2018 free cash flow to be -$10 million and 2019 free cash flow to be $20 million. After 2019, the company expects its free cash flow to grow at a constant rate of 4 percent per year indefinitely. If the company's weighted average cost of capital is 14 percent, what is its value of operations as of the end of 2017, to the nearest million?

Reference no: EM132795727

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