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You are determining whether to purchase another company or firm. The firm has projected free cash flows of $45,000 for Year 1, $60,000 for Year
You are determining whether to purchase another company or firm. The firm has projected free cash flows of $45,000 for Year 1, $60,000 for Year 2, and 80,000 for Year 3, $100,000 for Year 4, and 120,000 for Year 5. The projected terminal value at the end of Year 5 is $300,000. The firm's Weighted Average cost of Capital (WACC) is 11.0%.
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