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5. Calculate FINAL VALUATION from the following details: PV of FCFF (initial period) + PV of TERMINAL VALUE i) WACC 10% ii) Growth Rate 7%

5. Calculate FINAL VALUATION from the following details: PV of FCFF (initial period) + PV of TERMINAL VALUE i) WACC 10% ii) Growth Rate 7% Apply the correct discount factor. Free cash flows Year! Year 2 Year FCFF Profit after tax Depreciation & Amortisatasu Interst (Tax Rate) Nonnal Working capital Investment Nomal Fixed Capital Investment 100 20 9.95 50 18 8.62 250 16 6.63 8 10 13 13 20 25 FCFF Discount Factor PV of FCFF (initial period) Terminal Value of FCFF 4th year Discount Factor 4 year 8.297.28 0 PV of TERMINAL VALUE VALUATION Discount Factor Year 1 Year 2 At 7% 0.934579 0.873438 0.826446 Year 3 Year 4 0.816297 0.762895 0.751315 0.683013 At 10% 0.909091

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