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Ergo Unlimited s current year s free cash flow is $ 1 0 million. It is projected to grow at 2 0 % per year

Ergo Unlimiteds current years free cash flow is $10 million. It is projected to grow at 20% per year for the next five years. It is expected to grow at a more modest 5% beyond the fifth year. The firm estimates that its cost of capital is 12% during the next five years and then will drop to 10% beyond the fifth year as the business matures. Estimate the firms current market value. Please provide detailed explanation.

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