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XYZ Corporation is projecting its Free Cash Flow to the Firm ( FCFF ) for the next 5 years. The FCFF projections are as follows:

XYZ Corporation is projecting its Free Cash Flow to the Firm (FCFF) for the next 5 years. The FCFF projections are as follows:
Year 1: FCFF_1= $40
Year 2: FCFF_2= $55
Year 3: FCFF_3= $70
Year 4: FCFF_4= $85
Year 5: FCFF_5= $100
Other information:
The risk-free rate (rf) is 4%.
Equity risk premium or market premium(ERP) is 7%.
Beta (\beta ) of the company is 1.5.
The corporate tax rate (T) is 30%.
The company's debt carries an interest rate of 8%.
Equity and debt are in equal proportion in the firm.
The terminal growth rate (g) is 4%.
Calculate the estimated value of the firm using the DCF model.

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