Computing Present Value of Terminal Period FCFF

Use the following data to compute the present value of the terminal period free cash flows to the firm for each of the four firms. The forecast horizon included four years.

A B C D

Terminal period free cash flow to the firm (FCFF): $57,115 $1,258 $85,962 $29,117

WACC: 5.0% 6.2% 4.3% 11.0%

Terminal period growth rate: 1.0% 1.0% 2.0% 1.5%

Present value of terminal cash flows A B C D

$? $? $? $?