Firm C is considering the acquisition of Firm T. Firm C has estimated the cash flows, cost of capital, and growth rate for firm T shown below. Answer the following questions to estimate the current value of firm T using the terminal value (aka horizon value) technique.

Cash flows, cost of capital, and growth rate for firm T

	Year 1	Year 2	Year 3	Year 4
CF	$12,100	$13,500	$16,300	$18,400

WACC = 10%, g = 3% (assumed constant following year 4).

PLEASE SHOW CALCULATIONS, I will be extremely grateful.

Q1. What is the terminal value of Firm T in Year 4?

Q2. What is the present value of the terminal value?

Q3. What is the present value of Year 1 - Year 4 cash flows?

Q4. Estimate the current value of firm T.