Vasudevan Inc. forecasts the free cash flows (in millions) shown

# Vasudevan Inc. forecasts the free cash flows (in millions) shown

403.4k points

5. Vasudevan Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions?

Year: 1 2 3

Free cash flow: -\$20 \$42 \$45 a.$586

b. $617 c.$648

d. $680 e.$714

Vasudevan Inc
baptiste

405.9k points

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Excerpt from file: 5. Vasudevan Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions? Year: 1 2 3

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