A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital

Question:

A company forecasts the free cash flows (in millions) shown below. The weighted average is 13%, and the FCFS are expected to continue growing at a 5% rate after year 3. Assuming that the ROIC is expected to remain constant in year 3 and beyond, what is the year 0 value of operations, in millions?
Year: 1 2 3
Free cash flow: -$15 $10 $40

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...