Question: Using the following free cash flow data: Year. Cash flow 2014. $1,500,000 2015. $2,300,000 2016. $3,000,000 2017. $3,400,000 2018. $1,800,000 a. Calculate geometric total return

Using the following free cash flow data:

Year. Cash flow

2014. $1,500,000

2015. $2,300,000

2016. $3,000,000

2017. $3,400,000

2018. $1,800,000

a. Calculate geometric total return

b. Annualized rate of return

C. Prepare a 10 year cash flow forecast based upon the annualized rate of growth in cash flow

d. Calculate the net present value of the forecasted cash flows assuming an immediate investment cost of $18,500,000

a. Estimate cistvof capital using the following data:

Market value of debt -$600,000

Market valye of equity - %1,400,000

Current yield on debt -7.3%

Tax rate-35%

Expected market return -12%

Current 10 year US Treadury -3.8%

Beta -2.1

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