Question
ABC's analyst projects that ABC's expansion will add $75,000 in incremental after-tax free cash flows in year 1. After year 1 your analyst believes that
ABC's analyst projects that ABC's expansion will add $75,000 in incremental after-tax free cash flows in year 1. After year 1 your analyst believes that the annual growth rate will be 3.75% in perpetuity.
Assuming that ABC's WACC is 10.75%, what is the PV of these incremental free cash flows?
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Essential Personal Finance A Practical Guide For Students
Authors: Lien Luu, Jonquil Lowe, Jason Butler, Tony Byrne
1st Edition
1138692956, 978-1138692954
