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Xanadu Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 12% and the free cash flows

Xanadu Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital

is 12% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2

to Year 3, what is the Year 0 value of operations, in millions?

Year:123

Free cashflow:-$30$62$65

Please explain how you arrived to the solution.

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