investment opportunity promises to pay $80 per year for 10 years. Assume that the relevant discount (interest) rate for the above opportunity is 9%, what is the best estimate of the intrinsic value (i.e., "present value") of this investment? a. $422 b. $442 c. $513 d. $1,000 e. more than $1,000 57. For the investment described in question 56, what is the approximate value of the above investment opportunity at the end of year 10 (i.e., "future value")? a. $885 b. $1,215 c. $2,100 d. e. greater than $2,100 none of the above 58. Bubbly Spirits, Inc. is estimated to have Free Cash Flow in the just-ending period of $125 million. Assuming no growth in Free Cash Flow and a weighted average cost of capital of 9%, what is the value of the firm? a. b. c. d. e. $11.25 million $114.68 million $1.389 million $1,389 million cannot be computed 59. Suppose that Bubbly Spirits' (question 58) growth in Free Cash Flow is expected to be 3% in perpetuity. What is the value of the firm? a. $4,291 million b. $4,167 million c. $2,083 million d. $1,389 million e. $2,146 million 60. A colleague mentions that a stock is trading at 7-times Free Cash Flow (in other words, price per share FCF x 7, where FCF is on a per-share basis). Assuming that the company carries no debt and that the expected growth rate is zero, the implied discount rate is 7.0% 10.0% 14.3% 0.0% cannot compute without the growth rate. a. b. d. e. 12