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At the end of 2015, you forecast the following cash flows (in millions) for a firm with net debt of $560 million: 2016 2017 2018

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At the end of 2015, you forecast the following cash flows (in millions) for a firm with net debt of $560 million: 2016 2017 2018 Cash flow from Operations $2,540 $2,730 $2,950 Cash Investment 2,125 2,310 2,655 You forecast that free cash flow will grow at a rate of 5% per year after 2015. Use a required return of 11% in answering the following questions. Calculate the firm's enterprise value at the end of 2015. What will be the value of equity at the end of 2015. Select one: a. $3774.78 Ob. $5162.5 c. $4705 d. $4145

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