Q1. Vasudevan, Inc. forecasts the free cash flows (in millions) shown below.If the weighted average cost of capital is 17% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions?

Year Free Cash Flow

1 $(22.00)

2 $42.00

3 $45.00

Q2. Zhdanov, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$15 million (negative), but its FCF at t = 2 will be $30 million.After Year 2, FCF is expected to grow at a constant rate of 3% forever.If the weighted average cost of capital is 19%, what is the firm's value of operations, in millions?

Q3. Suppose Yon Sun Corporation's free cash flow during the just-ended(t = 0) year was $150 million, and FCF is expected to grow at a constant rate of 4% in the future.If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions?