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Company valuation Chiara Company's management has made the projections of Free Cash Flows from for years l-5. Use the illustrative income statement for Chiara in

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Company valuation Chiara Company's management has made the projections of Free Cash Flows from for years l-5. Use the illustrative income statement for Chiara in Table 1 (all figures are in Thousands of U.S. Dollars) to derivelcalculate the free cash flows beginning in Year O, but begin your use of cash flows starting in years l-4. Hence, you will need to calculate the Free Cash Flow from Assets, just as mentioned below. The weighted average cost of capital (WACC) rate is used to discount these free cash flows for Chiara Company Problem 2 continued on next page

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