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You are considering an acquisition of firm XYZ, and have prepared the following forecasts for it: Year 1 Year 2 Year 3 $94,000 Year 4

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You are considering an acquisition of firm XYZ, and have prepared the following forecasts for it: Year 1 Year 2 Year 3 $94,000 Year 4 $243,000 Free cash flow - $169,000 $11,000 The appropriate discount rate is 15%, and cash flows after year 4 will grow at 1% per year in perpetuity. What is the continuation value (terminal value) in year 4 for cash flows after year 4? What is the value of the firm today? ... What is the continuation value in year 4 for cash flows after year 4? The continuation value is $ (Round to the nearest dollar.) What is the value of the firm today The value today is $. (Round to the nearest dollar.)

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