Question
Project cash flows are provided below. The project is assumed to have an infinitely long life with post year 4 cash flows growing at 3%
Project cash flows are provided below. The project is assumed to have an infinitely long life with post year 4 cash flows growing at 3% in perpetuity. WACC is 10%. What is the present (t=0) value of terminal value?
| 0 | 1 | 2 | 3 | 4 | |
| FCFF | -100 | 75 | 85 | 95 | 105 |
A) 1055
B) 1650
C) 1545
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Finance Applications And Theory
Authors: Marcia Millon Cornett, John R. Nofsinger, Troy Adair
3rd International Edition
1259252221, 9781259252228
