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Calculate PV of free cash flows in each year up to terminal value point in time. Example: Free Cash Flows for ABC, Inc. Assume t
Calculate PV of free cash flows in each year up to terminal value point in time.
Example:
Free Cash Flows for ABC, Inc.
Assume t0 = 2003 and k = 10%
2003: (500) 2008: 3,200
2004: 1,200 2009: 4,300
2005: 1,900 2010: 5,100
2006: 2,100 2011: 5,800
2007: 2,500 2012: 6,400
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