Question: Consider these cash flow returns beginning one year after having generated $100,000 in Free Chas Flow: Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 4%

Consider these cash flow returns beginning one year after having generated $100,000 in Free Chas Flow:
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8
4% 9% 16% 24% 15% 4% 4% 4%

1.You are doing a DCF. What year makes the most sense to apply the Gordon Growth Model?

2. What is the present value of these cash flows if the relevant cost of capital is 12%?

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