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Hill McLaw's free cash flow will be $30 million next year and it will grow at a constant rate of 3 percent forever. The company
Hill McLaw's free cash flow will be $30 million next year and it will grow at a constant rate of 3 percent forever. The company will launch Project X in three years. It will require a $10 million investment and will increase the firm's free cash flow by a constant $9.2 million every year forever starting one year later (i.e. 4 years from now). Suppose the relevant discount rate is 14.6 percent. What is the Enterprise Value of Hill McLaw's? Select one: a. $294 million 0 b. $312 million c. $151 million O d. $35 million e. $241 million
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