What is the firms value of operations in millions

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Reference no: EM131316553

1. Describe each of the following valuation methods is calculated and individually identify the problems of methods (b) through (e): a. NPV b. IRR c. MIRR d. Pay Back e. Profitability Index

2. Zhdanov Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?

$158

$167

$175

$184

$193

Reference no: EM131316553

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