I need to find the free cash flow valuation of this problem.

Q To learn more about present values, see Appendix A to this book. EXHIBIT 7.1 Illustration of the Discounted Free Cash Flow Approach to Valuation 20x3 Step 1: Forecast expected future free cash flows 20x1 Net cash flows from operations $20,000 Cash flow from selling all trucks Capital expenditure at the end of 20X2 Future free cash flows 20,000 20x2 $20,000 20X4 $25,000 $25.000 20x5 $25.000 30,000 (20,000) 0 25,000 25,000 55.000 Step 2: Determine the discount rate (10%) Step 3: Determine the discounted present value of future free cash flows 20,000 0.90909 $18,182 0 0.82645 0 25.000 0.75131 $18,783 25,000 0.68301 $17.075 55.000 0.62092 $34.151 Future free cash flows Present value factor 1/(1.10 Present values Total present value of future free cash flows Cost to launch business Net present value of business opportunity $88.191 (80,000) $ &191 Next, Chol must assess the cash flow risk associated with the truck rental business and determine the appropriate discount rate. For now, let's just say its 10 M Q To learn more about present values, see Appendix A to this book. EXHIBIT 7.1 Illustration of the Discounted Free Cash Flow Approach to Valuation 20x3 Step 1: Forecast expected future free cash flows 20x1 Net cash flows from operations $20,000 Cash flow from selling all trucks Capital expenditure at the end of 20X2 Future free cash flows 20,000 20x2 $20,000 20X4 $25,000 $25.000 20x5 $25.000 30,000 (20,000) 0 25,000 25,000 55.000 Step 2: Determine the discount rate (10%) Step 3: Determine the discounted present value of future free cash flows 20,000 0.90909 $18,182 0 0.82645 0 25.000 0.75131 $18,783 25,000 0.68301 $17.075 55.000 0.62092 $34.151 Future free cash flows Present value factor 1/(1.10 Present values Total present value of future free cash flows Cost to launch business Net present value of business opportunity $88.191 (80,000) $ &191 Next, Chol must assess the cash flow risk associated with the truck rental business and determine the appropriate discount rate. For now, let's just say its 10 M