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Year Free Cash Flow 1 $10 million 2 3 $16 million 4 $20 million $24 million AAA is expected to generate the above free cash
Year Free Cash Flow 1 $10 million 2 3 $16 million 4 $20 million $24 million AAA is expected to generate the above free cash flows over the next four years, after which they are expected to grow at a rate of 5% per year. If the weighted average cost of capital is 10%, what is AAA's enterprise value in year zero? (Hints: you'll need the terminal enterprise value you computed in the previous question.) $416.76 million A. $628.24 million B. $397.97 million C. $214.45 million D
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