1.Bo Corp. expects NOPLAT of $2,500,000 in the first year after the forecast period (or the first year of continuing value period.In addition Bo expects growth of 3% during the continuing value period, return on new invested capital of 10%, and a weighted average cost of capital of 6%.Using the formula on page 260 of the text, please calculate the continuing value for Bo Corporation.

2.Go Corp. expects free cash flows of $1,000,000, $1,100,000, $1,200,000, $1,300,000, $1,400,000, in years 1,2 3,4, 5 respectively.In addition, Go has a continuing value of $2,500,000 at the end of year 5 and a cost of capital of 9%.Assuming year end cash flows, please open an excel spreadsheet enter the numbers above (in year 5 - you will have to sum the cash flow and the continuing value).Then use the NPV function to bring these yearly cash flow totals to present using the weighted average cost of capital as the discount rate. The enterprise value for Go Corp is _______________.