You are evalusting the potential purchase of a small business currently generating $42,500 in after-tax cash. flows. On the basis of a review of similar-risk investment opportunitios, you must cam an 18% zate of retum on the proposed purchase. Because you are relatively uncertain about future cash flows, you decide to estimate the firm's value using several possible assumptions sbout the growth rate of cash flows. 8. What is the firm's value if cash flows are expected to grow at an annual rate of 0% from now to infinity? 2 marks b. What is the firm's value if cash flows are expected to grow at a constant annual rate of 7% from now to infinity? 3 marks c. What is the firm's value if eash flows are expected to grow at an annual rate of 12% for the first 2 years, followed by a constant annual rate of 7% from year 3 to infinity? 6 marks