Suppose your firm is 100% financed by equity. You firm's free cash flow per year is as follows:

Year 1 = 120,000

Year 2 = 140,000

Year 3 = 150,000

Year 4 = 160,000

Year 5 = 170,000

Year 6 = 180,000

The cost of capital is 30% for the first 1- 5 years, and will be reduced to 20% after 5th year.

a) What would be the terminal value at year 5, if there is 2% growth expected beyond 5th year.

VCF₆ = ??

g₆ = ??

r₆ = ??

Terminal value at year 5 = P₅ = VCF₆ / (r₆ - g₆) = ??

b) What is present value of the firm today?

r1 = ??

P₀ = VCF₁ / (1 + r₁)¹ + ... + (VCF₅ + P₅) / (1+r₁)⁵ = ??