Find the present value of the venture in dollars

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1. Suppose that the first cash flow of a venture is expected in Year 6, and expected to be $691,549. Cash flows will grow at a rate of 4% after that. Find the present value of the venture in dollars (at Year 0) assuming a discount rate of 29%.

2. Suppose that the first cash flow of a venture is expected in Year 6, and expected to be $1,201,207. Cash flows will grow at a rate of 8% after that. Find the present value of the venture in dollars (at Year 0) assuming a discount rate of 17%.

3. Suppose a venture's first cash flow is expected in Year 5, and the cash flow is expected to be 1,619,488. A comparable firm has earnings of 24,868,622 and a market cap of 559,029,791. Assuming a discount rate of 31%, find the present value (at Year 0) of the firm in dollars.

Reference no: EM131899301

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