Hi,

I am actually working on a HBS (Nextel Peru). The whole case seems to be basically about determining FCFs and then discount them to value a company. I will use RRR to discount the FCFs. As the RRR is defined as = +()+( ).

I forecast FCFs over next 5 years using the industry median (is median or average better by the way?) growth rate in revenue and median margin of FCF. However for the terminal value, I am struggling to define the long-term growth rate.

The acquired company is Peruvian, as the case mentions GDP growth in Peru for next two years between 6 and 6.5% (before the 5 years forecasted then) or long-term expected growth rate of 3% in US.

Thanks a lot,

Gaspar