Question: Project cash flows are provided below. The project is assumed to have an infinitely long life with post year 4 cash flows growing at 3%

Project cash flows are provided below. The project is assumed to have an infinitely long life with post year 4 cash flows growing at 3% in perpetuity. WACC is 10%. What is the present (t=0) value of terminal value?

0 1 2 3 4
FCFF -100 75 85 95 105

A) 1055

B) 1650

C) 1545

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