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What is the horizon value of a firm at time 4 given the free cash flow forecasts for the next 4 years and assuming a

What is the horizon value of a firm at time 4 given the free cash flow forecasts for the next 4 years and assuming a growth rate of 2% thereafter? The cost of capital is 16%.

Year 1: 6100

Year 2: 7200

Year 3: 8000

Year 4: 8800

  1. $62,857.15

  2. $64,114.29

  3. $41,956.64

  4. $59,588.86

  5. $51,794.71

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