Terminal value refers to the valuation attached to the end of the planning period; it captures the value of all subsequent cash flows. Estimate the value today for each of the following sets of future cash flow forecasts.

Shameless Commerce Inc. has no outstanding debt and is being evaluated as a possible acquisition. Shamelesss FCFs for the next five years are projected to be $1 million per year, and, beginning in year 6, the cash flows are expected to begin growing at the anticipated rate of inflation, which is currently 3% per annum. If the cost of capital for Shameless is 10%, what is your estimate of the present value of the FCFs?

Please show formulas so I can re-create in Excel. Thanks!!!

b. Shameless Commerce, Inc.
Given
Unlevered Cost of Capital	10.00%
growth rate in terminal cash flows	3.00%
	Year
	1	2	3	4	5	6+
FCF	$ 1,000,000.00	$ 1,000,000.00	$ 1,000,000.00	$ 1,000,000.00	$ 1,000,000.00	$ 1,030,000.00
Solution
Valuing the unlevered cash flows
Planning period	????????
Terminal value	????????
Enterprise Value	????????