Computing Present Value of Terminal Residual Operating Income Use the following data to compute the present value of the terminal period ROPI for each of the four firms A through D. Assume a forecast horizon of four years.

A ???? ???? ????

Terminal period ROPI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $171,345 $10,101 $57,008 $87,956 Weighted average cost of capital (WACC) . . . . . . . . . . . . . . . . . . . . 7.2% 11% 8.8% 13%

Terminal period growth rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0% 1% 2.5% 2%