What is the current value of operations

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A company forecasts free cash flow in one year to be -$10 million and free cash flow in two years to be $30 million. After the second year, free cash flow will grow at a constant rate of 4 percent per year forever. If the overall cost of capital is 14 percent, what is the current value of operations, to the nearest million? (hint: The horizon value will expressed in year 2 dollars and will need to be discounted to the present, along with another cash flow)

Reference no: EM132507360

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