A venture is not expected to produce any free cash flows until the end of year 5
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Question:
A venture is not expected to produce any free cash flows until the end of year 5 when the cash flow is estimated at $60,000 and is expected to grow at a 12% per year into the future. What should be the terminal value of the venture at the end of year 4 if the cap rate is 3%?
Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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