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A company is forecasted to generate free cash flows of $30 million next year (t-1) and $40 million the year after (t=2). After that, cash
A company is forecasted to generate free cash flows of $30 million next year (t-1) and $40 million the year after (t=2). After that, cash flows are projected to grow at a 2% annual rate in perpetuity. What's your estimate of the company's free cash flows for year 3? Answer in millions, rounded to one decimal place (e.g. $23.67 million = 23.7) (Hint: You know year 2 cash flow and the annual growth rate after that).
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