Please explain what is the highest level of initial investment FOR THE COMPANY BELOW instead of the $500,000 I HAVE, Why? Give a complete explanation of the highest dollar amount you would be willing to invest for these returns.

 

Company 1 Discount Rate (WACC) Perpetual Growth Rate 10.00% 2.50% Year 1 Year 2 Year3 Year 4 Year 5 Year 5 Terminal Valus (TV) $295.000 2.50% $30.000 S50,000 80.000 $120,000 $170.000 Histarical Free Cash Flow Growh Rate Less Company Purchase Expense Basic Cash Fiow Discounted Cash Row(DCF) Present Value PV) 66.67% 60.00% 50.00% 41.67% Perpertual Growth Rate S500,000 $500,000 S500,000 5500,000 S500,000 Less Company Purchase Expense S500,000 $470,000 $205,000 $450,000 $41,322 S60,105.18 420,000 $380,000 $330,000 Basic Cash Fow $27 273 S81.962 S105,557 Discounted Cash Flow (DCF) Present Value (PV) S183,172