Asked by baptiste 5 years ago

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

Answered by yoKev 5 years ago

**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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Asked: 5 years ago