Question
Bay Properties is considering starting a commercial real estate division. It has prepared the following? four-year forecast of free cash flows for this? division: Year
Bay Properties is considering starting a commercial real estate division. It has prepared the following? four-year forecast of free cash flows for this? division:
| Year 1 | Year 2 | Year 3 | Year 4 | |
| Free cash flow | ?$152,000 | $12,000 | $84,000 | $211,000 |
Assume cash flows after year 4 will grow at
4%
per? year, forever. If the cost of capital for this division is
10%?,
what is the continuation value in year 4 for cash flows after year? 4? What is the value today of this? division???
What is the continuation value in year 4 for cash flows after year? 4?
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Month To Month Rental Agreement Forms Book
Authors: Gladys F. Rona
1st Edition
979-8440905979
