1. Refer to the following pro forma financial statements for ABC Corp. At the end of 2014 you are valuing ABC Corp. and are calculating a 2018 terminal value based on a liquidation scenario. What would the terminal value be in present value (2014) terms? Assume that the resale value of PP&E is 500 and that the appropriate discount rate is 10%.

Income statement			Selected balance sheet items
	2018			2017	2018
Sales	2000		Current assets	500	550
COGS	1650		PP&E (Net)	250	300
Operating expenses	200
Depreciation	50		Current liabilities	370	350
Interest expense	50
Earnings before taxes	50
Tax	10
Net income	40