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In an M&A evaluation using discount cash flow method, the estimated FCFF of the target firm for the next two years (i.e., year 1 and

In an M&A evaluation using discount cash flow method, the estimated FCFF of the target firm for the next two years (i.e., year 1 and year 2) will be $30 million and $35 million, respectively. Thereafter the FCFF is forecasted to grow by 4% a year. The firm's WACC is 10%. 


Estimate the value of  the firm.

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