Question: Question 1. (4 Marks) A company is considering undertaking a project. The finance manager was asked to estimate the value of the project. He estimated

Question 1. (4 Marks) A company is considering undertaking a project.

Question 1. (4 Marks) A company is considering undertaking a project. The finance manager was asked to estimate the value of the project. He estimated the expected free cash flows (FCF) of the project in the next three years, which is the lifetime of the project, as in the table below. Calculate the value of the project given a 6% Weighted Average Cost of Capital (WACC). Note: 1 mark for each year and 1 mark for the total value Question 1. (4 Marks) A company is considering undertaking a project. The finance manager was asked to estimate the value of the project. He estimated the expected free cash flows (FCF) of the project in the next three years, which is the lifetime of the project, as in the table below. Calculate the value of the project given a 6% Weighted Average Cost of Capital (WACC). Note: 1 mark for each year and 1 mark for the total value

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