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You are going to consider to takeover new start-up company (FIN-SOL) providing fintech solution to Brokerage house industry. Currently, FIN-SOL is making $63,750 of net

You are going to consider to takeover new start-up company (FIN-SOL) providing fintech solution to Brokerage house industry. Currently, FIN-SOL is making $63,750 of net cash flow (tax adjusted) annually. Based on market analysis conducted by your research team, of similar-risk investment opportunities, you must earn atleast 18% rate of return on such type of investment opportunities bearing similar-risk. Due to current COVID-19 pandemic situation in all over the world, you are reluctant to take risk and also feel risky about future cash flows, now you are going to estimate the firm's value using several possible assumptions about the growth rate of cash flows. 



Requirements: 


Calculate FIN-SOL's value if you expect growth in cash flows 0% annually from now to infinity? 


 Calculate FIN-SOL's value if you expect that cash flows will grow at a constant rate of 7% (annually) from now to infinity?



 Calculate FIN-SOL's value if you expect cash flow will grow at 12% (annually) for the first 4 years, followed by a constant annual rate of 8% from year 5 to infinity? 



Critically evaluate above result and propose whether you should go for this investment opportunity or avoid it?

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