The expected future cash flows for a firm have been forecasted in two stages and correspond to two time periods. Stage one is a finite horizon from years 1 to 5. Stage two is the remaining infinite horizon from year 6 to infinity.

Given these forecasted cash flows, compute the current value of the firm and the value added by the firm using five equivalent methods: (1) Adjusted Present Value, (2) Free Cash Flow to Equity, (3) Free Cash Flow to the Firm, (4)

Dividend Discount Model, and (5) Residual Income. Given expected future cash flows for a project, compute the present value of future cash flows and the NPV of the project using the same five equivalent methods.