Mack Industries' free cash flow last year was $1 million (i.e., FCF0 = $1 million). You project the company's free cash flow to grow 20% this year and 15% next year. After two years, FCF is expected to grow at a constant rate of 7%. The cost of capital is 10%. What is the company's present value of operations (VOP)?

Answer rating: 100% (QA)

To calculate the present value of operations VOP we need to calculate the free cash flow FCF for the ... View the full answer