Depreciation $1,240 $1,520 $1,990 $2,300 $2,584 Working $675 $ 675 $775 $875 $974 Capital Capital $5,000 $4200 $1200 $800 $540 Expenditures Free Cash $(1600) $(875) $(1,240) $(4,300) $(3.300) Flows Use the assumed discount rate of 10% to value the firm and assume that the 5th year cash flow will carry into the future. Outpatient Clinic Valuation: PV of Cash Flows Year 1 Year 2 Year 3 Year 4 Year 5 Present Value or Residential Value Cash flows after Year 5 Total Value Amount PV Factor Ce PV 01600 0.909091 -1454.55 -875 -1240 -> 4300 -3300 0.826446 0.909091 0.826446 0.909091 723.14 -1127.27 -3553.72 - 3000