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ABC Company generated after-tax operating income of $ 8 million on revenues of $100 million in the most recent year. Its book value of capital
ABC Company generated after-tax operating income of $ 8 million on revenues of $100 million in the most recent year. Its book value of capital in the most recent year was $ 20 million. If you expect that after-tax operating income will grow 10% a year for the next 3 years and that the firm will maintain its current return on capital, estimate the expected cash flows each year for the next 3 years. Select one: a. Year 1 6.6 Year 2 7.26 Year 3 7.986 FCF b. Year 1 6 Year 2 6.6 Year 3 7.26 FCF Year 3 Year 1 8 Year 2 8.8 FCF 9.68 d. Year 1 Year 2 4.4 Year 3 5.84 FCF 4 e. Year 1 4.4 Year 2 5.84 Year 3 5.324 FCF f. Year 1 8.8 Year 2 9.68 Year 3 10.648 FCF
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