Question
In 2021 MECCS Inc. is considering sale of its transportation unit, Apisco Travels. Long term growth of free cash flow is projected at 4.8 %,
In 2021 MECCS Inc. is considering sale of its transportation unit, Apisco Travels. Long term growth of free cash flow is projected at 4.8 %, WACC is 9% and the unlevered cost of equity is 12%. Find the PV of the Terminal Value.
| 2024 | |
| Net Income | 18,575 |
| Increase (decrease) in NWC | 2,405 |
| Depreciation | 12,665 |
| Increase in Deferred Taxes | 308 |
| Net Interest After Tax | 7,524 |
| CAPEX Additions | 22,117 |
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Investment Science
Authors: David G. Luenberger
1st International Edition
0195391063, 9780195391060
