Question: P1.4 Basic DCF Valuation #2: A company has expected free cash flows of $1.45 million, $2.93 million, and $3.2 million in the next three years.

P1.4 Basic DCF Valuation #2: A company has expected free cash flows of $1.45 million, $2.93 million, and $3.2

million in the next three years. Beginning in Year 4, the expected cash flows will grow (or decrease) by 25%

in perpetuity. Measure the value of this company as of today using both a 10% and 12% discount rate.

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