Homework: HMSQ 2.3 Score: 0 of 2 pts 6 of 7 (1 complete) HW Score: 952% 1 33 of 14 pts P7-16 (similar to) Question Help Free cash flow valuation You are evaluating the potential purchase of a small business with no debtor preferred stock that is currently generating 541,900 of free cash flow (FCF, -541.900) On the base of a review of similar Investment opportunites, you must earn a(n) 18% rate of return on the proposed purchase. Because you are relatively uncertain about future cash flows, you decide to estimate the firm's value using several possible assumptions a. What is the firm's value of cash flows are expected to grow at an annual rate of 0% from now to Infinity b. What is the firm's value if cash flows are expected to grow at a constant annual rate of 7% from now to infinity? c. What is the firm's value il cash flows are expected to grow at an annual rate of 125 for the first 2 years, followed by a constant anual rate of 7%. trom your 3 to infinity a. The firm's value, il cash flows are expected to grow at an annual rate of Os from now to infinity, is $(Round to the nearest cent) En your win the box and hence Checker 4 por 2 E c Type here to search o 8