Good evening,

I need some help with this assignment.

Assignment

Scenario: A firm has projected free cash flows of

$575,000 for Year 1,

$625,000 for Year 2,

750,000 for Year 3.

The projected terminal value at the end of Year 3 is $8,000,000.

The firm's Weighted Average cost of Capital (WACC) is 12.5%.

• Explain, show the formula and show the calculation (step by step) of the Discounted Cash Flow (DCF) value of the firm.
• Cite any references used

Thanks,

G