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As an analyst at Berkshire Hathaway you identify a company you think you can turn around. It is projected to have FCFF of $245 million

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As an analyst at Berkshire Hathaway you identify a company you think you can turn around. It is projected to have FCFF of $245 million next year, but will have negative FCFF of negative $112 million in year 2. The year after that FCFF is projected at $87 million and then $90 million at the end of year 4, after which it is expected to grow 4% per year forever. What is the total value of the firm if the appropriate discount rate is 16%? Select one: O a. $742 million O b. $483 million O c. $853 million O d. $173 million As an analyst at Berkshire Hathaway you identify a company you think you can turn around. It is projected to have FCFF of $245 million next year, but will have negative FCFF of negative $112 million in year 2. The year after that FCFF is projected at $87 million and then $90 million at the end of year 4, after which it is expected to grow 4% per year forever. What is the total value of the firm if the appropriate discount rate is 16%? Select one: O a. $742 million O b. $483 million O c. $853 million O d. $173 million

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