X. Company is a startup company that wish to Value its company. X, Company would want to know the Discounted Cash Flow of the Business after 3 years:

X. Company Issued 10,000 Ordinary shares of P100 par Value Shares - 1,000,000

X, Company borrowed from the bank Loans Payable Due after 3 years - 5,000,000, 12% Interest Rate

Projected Sales

Year 1 - 500,000

Year 2 - 600,000

Year 3 - 1,000,000

Sales are collected as follows

50% on the Year of Sale

20% on the year following the sale

30% on the 2nd year following the sale

Expenses, All cash except 50,000 Depreciation per year,

Year 1 - 700,000

Year 2 - 750,000

Year 3 - 900,000

Asset Acquisition (CASH)

Year 1 - Land and Building - 500,000, Equipment - 100,000

Potential Dividends to be paid to stockholders

Year 1 - 20,000

Year 2 - 30,000

Year 3 - 50,000

The Discount Rate of X, Company is 12%

WHAT IS THE PRESENT VALUE OF CASH FLOWS FOR FOR X,COMPANY, Provide your Solution