steps to do this

4. You are evaluating a company and you have created a DCF model of its cash flows. You have also calculated its rwace to be 9%. You have estimated the following free cash flows: $1MM at year 1, $2 MM at year 2, $2.5 MM at year 3. After year 3, the cash flow will grow at 3% every year forever. What is the enterprise value (in MM)? a. $35.07 b. $35.74 c. $37.67 d. $40.65 Solution: C