Question 1:

An asset is projected to generate 9 annual cash flows of $4,000 starting 11 years from today and a final one-time cash flow of $12,000 in 26 years from today. If the appropriate discount rate is 7.1%, how much is this asset worth today? Round to the nearest dollar.

Question 2:

A company had total revenues of $71 million, operating margin of 39.3%, and depreciation and amortization expense of $20 million over the trailing twelve months. The company currently has $232 million in total debt and $58 million in cash and cash equivalents. The company's shares are currently trading at $26.5 per share and there are 6 million shares outstanding. What is its EV/EBITDA ratio? Round to one decimal place.

Question 3:

Consider a company that is projected to generate revenues of $195 million next year. Analysts expect revenues to grow at a 5.0% annual rate for the following two years (until the end of year 3) and then at a stable rate of 2.7% in perpetuity. If the company is expected to have a gross margin of 75%, operating margin of 60%, net margin of 25%, tax rate of 11.0%, and reinvestment rate of 63%, what is its expected free cash flows in four years from today? Answer in millions, rounded to one decimal place (e.g., $2,315,612 = 2.3).