Question: Explain calculations in detail so i can learn. The table below shows the projected free cash flows of an acquisition target. The discount rate to

Explain calculations in detail so i can learn.

Explain calculations in detail so i can learn. The table below shows

The table below shows the projected free cash flows of an acquisition target. The discount rate to value the target is 9% discount rate. The acquiring company expects the terminal period to begin at the end of 2024 with a perpetual growth rate of 3% from that point on. The Present Value of $1 Table (Table 3) tells us: Terminal Value using perpetual growth equation: FCFT+1 Kwg Question: Based on the information above and using the terminal value with perpetual growth formula, what is the value of this target company as of 12/31/20? Hint: You need to use the present value table to discount 2021 through 2024 cash flows to the end of 2020 (Year 0) and add it to the terminal value at the end of 2024 discounted to the end of 2020

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