Question: In a DCF setup, the explicit forecast period (the projection period) is determined to be 3 years. Furthermore, FCF 1 =$125,000 FCF 2 =$175,000 FCF

In a DCF setup, the explicit forecast period (the projection period) is determined to be 3 years. Furthermore,

FCF1=$125,000

FCF2=$175,000

FCF3=$225,000

Terminal value= $2,000,000

Discount rate= 20%

What is the value of this company's operations?

$1,714,365.91

$1,678,685.72

$1,513,310.19

$1,425,785.43

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