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%?

Answer rating: 100% (QA)

To calculate the terminal value of the venture at the end of year 4 we need to estimate the cash flo... View the full answer