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show all work You are considering an acquisition of firm XYZ, and have prepared the following forecasts for it: Year 1 Year 2 Year 3

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You are considering an acquisition of firm XYZ, and have prepared the following forecasts for it: Year 1 Year 2 Year 3 Year 4 Free cash flow - $141,000 $13,000 $91,000 $198,000 The appropriate discount rate is 13%, and cash flows after year 4 will grow at 5% per year in perpetuity. What is the continuation value (terminal value) in year 4 for cash flows after year 4? What is the value of the firm today

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