Question: 2) Consider the attached pro-forma cash flow statement. Assume that 75% of net cash flow is free, so that we can use it for valuation
2) Consider the attached pro-forma cash flow statement. Assume that 75% of net cash flow is free, so that we can use it for valuation of the company. Also, assume that the initial cash was $75,000, and the terminal value of the company in 2017 is $2M (Use the discounted cash flow (DCF) method to calculate the valuation of the company in 2017 where: (a) the discount rate is 15%; (b) the discount rate is 25%; and (c) the discount rate is 35%. Plot these three valuation measure on a single bar chart, and comment on the difference between them
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