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Firm FIAs projected cash flows (FCFF) are as follows: Year 1 2 3 4 CF 500 1,500 2,000 3000 Assume that the discount rate is

Firm FIAs projected cash flows (FCFF) are as follows:

Year

1

2

3

4

CF

500

1,500

2,000

3000

Assume that the discount rate is 12.5% and you use exit multiples to estimate the terminal value. The firm value at year 4 equals 10 times its cash flow. What is the intrinsic value of the firm?

13,578.95

27,865.24

21,763.15

34,000.00

16,246.81

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