What is the horizon value given the company

Reference no: EM13256911

A firm forecasts of cash flows ($millions) in years 1 thru 4 to be $120, $130, 135, and $137, respectively. If the project ends at the end of the fourth year, what is the horizon value given the company has historical growth of 3% and a discount rate of 10%? (answers in $millions)

(a) $0.00 (b) $1.37 (c) $1.96 (d) $4.87

Reference no: EM13256911

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