I have a question regarding this problem. Can someone help me understand how to get the economic value of free cash flows (FCF's)?:

I am stuck with this question:

-> What is the economic value at t= 0 of the FCF's MACKing will generate during the e-m period (the subsequent 15 yrs) and during the late-m period?

Here is the info:

-There's a startup called "MACKing". This new business in the market is being evaluated by the peeps that started it at date 0. Dates 0-5 are known as thegrowth period.

-After the g period, MACKing will dive into the early-maturity period (e-m). This new period lasts fifteen years!

-After MACKing finishes the e-m period, MACKing enters thelate-maturity period forever and ever (perpretuity).

Here are a couple of Assumptions:

-In the g period, the growth rate of invested capital is 100%. Yes, 100%! Also, the return on invested capital (r) is 10%, and the required rate of return (ROIC) is 20%.

-Now, in the e-m period things change. The growth rate is 10%, the ROIC is 50%, and r is 12%.

-However, in the late-maturity period, the growth rate is now 3%, ROIC is 8% and r is also 8%. $3 million is the amount of invested capital in MACKing at the beginning of the growth period.