What is the terminal, or horizon value of operation

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Brooks Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company's weighted average cost of capital is 12%. What is the terminal, or horizon, value of operation? (hint: find the value of all free cash flows beyond year 2 discounted back to year 2)

Reference no: EM13298310

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