Question
A firm has projected free cash flows of $575,000 for Year 1, $625,000 for Year 2, and 650,000 for Year 3, $725,000 for Year 4,
A firm has projected free cash flows of $575,000 for Year 1, $625,000 for Year 2, and 650,000 for Year 3, $725,000 for Year 4, and 850,000 for Year 5. The projected terminal value at the end of Year 5 is $6,000,000. The firm's Weighted Average cost of Capital (WACC) is 12.5%
Determine the Discounted Cash Flow (DCF) value of the firm based on the information provided above.
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
