Question: Problem 6 Analysts often value companies by forecasting a series of cash flows and then estimating a horizon value. Suppose a firm forecasts a project's

Problem 6 Analysts often value companies by forecasting a series of

Problem 6 Analysts often value companies by forecasting a series of cash flows and then estimating a horizon value. Suppose a firm forecasts a project's net cash flows (\$millions) in years 1 through 4 as $120,$130,$135, and $137, respectively. If the project ends at the end of the fourth year, compute the following 1. The horizon value 2. The value of firm Assume that the company had a historical growth rate of 3 percent and has a discount rate of 10 percent

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