Zhdanov inc forecasts that its free cash flow in coming

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

Suppose Leonard, Nixon, and Shull Corporation's projected free cash flow for subsequently year is $100,000, and FCF is expected to grow at a constant rate of 6 percent. If the company's weighted average cost of capital is 11 percent, find the value of its operations?

Cornell Enterprises is allowing for a project that has the following cash flow and WACC data. Evaluate the project's NPV? Note that a project's expected NPV will be negative, in which case it will be rejected.
WACC: 10.00%
Year 0 1 2 3
Cash flows -$1,050 $450 $460 $470

Reference no: EM13370678

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