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p5-4. Electricute Inc. has projected net cash flows from operations at Php45 Million on the first year. In order to realize the 10% growth for
p5-4. Electricute Inc. has projected net cash flows from operations at Php45 Million on the first year. In order to realize the 10% growth for the next 4 years, Electricute purchased CAPEX amounting to Php250 Million within the first year . Half of the CAPEX was funded by liability and no other long term liability was existing before the purchase on the first year. 1. For its five-year projection, Electricute's discounted net cash flow to the firm assuming a discount rate of 7.5% is 2. For its five-year projection, Electricute's net cash flow to equity assuming a discount rate of 7.5% is P5-5. An analyst is evaluating Wicked Inc. and shared the following projected net cash flows for the next 10 years. Y1 1,000,000 Y2 1,000,000 Y3 1,150,000 Y4 1,200,000 Y5 1,200,000 Y6 1,300,000 1,500,000 1,700,000 Y9 2,000,000 Y10 2,200,000 47 Y8 Wicked expects to continue to grow infinitely using the CAGR of the 10-year forecast period. Required return relevant to Wicked Inc. is at 12.1%. Requirements: 1. What is the compounded annual growth rate of 10-yr net cash flow projection of Wicked Inc.? 148 Scanned with CanScanner VALUATION CONCEPTS AND METHODOLOGIES 2. What is the terminal value to be incorporated in the net cash flow to the firm computation? 3. What is the net cash flow to the firm of Wicked Inc.? 4. What is the net cash flow to oquity of Wicked Inc
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