Using the following tables of a project, find the following: Present value of FCFFs in years
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Question:
Using the following tables of a project, find the following:
• Present value of FCFFs in years 1-4 = ?
• Terminal value (=present value of perpetuity) in year 4 =?
• Terminal value (=present value of perpetuity) - discounted =?
• Total present value (PV)=?
• Present value of perpetuity as % of total PV=?
Annual Discount Rate: 8.92%
Long term growth rate: 30%
Annual Free Cash Flow to the Firm (FCFF) Projections | ||||
Year 1 | Year 2 | Year 3 | Year 4 | |
Net profit | -€ 223,916 | -€ 200,878 | -€ 71,238 | € 80,008 |
Depreciation and amortization (D&A) | € 2,260 | € 22,272 | € 108,391 | € 579,885 |
CAPEX | € 2,260 | € 22,272 | € 108,391 | € 579,885 |
Free cash flows to the firm (FCCFs) | -€ 223,916 | -€ 200,878 | -€ 71,238 | € 80,008 |
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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