What is the horizon value at the end of year five

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Reference no: EM131186284

Based on the following data, what is the horizon value at the end of year 5?

Year = 1

Revenue = 630.00

Other income = 20.00

Fixed costs = 90.00

Variable costs = 220.00

Additional investment in NWC = 3.00

Additional investment in operating long term assets = 80.00

Depreciation = 75.00

Tax rate = .40

The free cash flow is expected to grow 8% from year 1 to 5 and 6% after year 5 to infinity,

WACCcomp=12%

A. $3,532.76

B. $3,414.04

C. $3,629.33

D. $3.766.90

E. $3,394.77

Reference no: EM131186284

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