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Smoothtone Products manufactures sound systems. The companys weighted average cost of capital is 15 percent. The company forecasted the following free cash flows for the

Smoothtone Products manufactures sound systems. The companys weighted average cost of capital is 15 percent. The company forecasted the following free cash flows for the next 20 years.

Year Free Cash Flows
1 $10,000,000
2 $15,000,000
3 $20,000,000
4 $22,000,000
5 25,000,000
6-10 20,000,000 per year
11-20 15,000,000 per year

Use the discounted cash flow approach to value the Smoothtone Products Company. Please provide step-by-step instructions on how to solve this problem along with the answers. Thank you in advance.

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