Drinks Inc. has estimated the following free cash flows for its five-year planning period:
Year Free Cash Flows
($ millions)
1 ........................ 35.0
2 ........................ 38.0
3 ........................ 45.0
4 ........................ 49.0
5 ........................ 53.0
Required:
How might it be possible to check the accuracy of these figures? What internal and external sources of information might be used to see whether the figures are realistic?