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At the end of 2012, you receive from an analyst the following forecast (in millions) for a firm with an estimated enterprise value of 7900
At the end of 2012, you receive from an analyst the following forecast (in millions) for a firm with an estimated enterprise value of 7900 million:
2013 2014 2015
Cash flow from operation 1450 1576 1718
Cash investment 1020 1124 ?
The required return for operations is 10 percent and it is estimated that the free cash flow will grow at 4% after 2015. Calculate cash investment for 2015.
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