You are going to consider to takeover new start-up company (FIN-SOL) providing fintech solution to Brokerage house
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Calculate FIN-SOL's value if you expect growth in cash flows 0% annually from now to infinity?
Calculate FIN-SOL's value if you expect that cash flows will grow at a constant rate of 7% (annually) from now to infinity?
Calculate FIN-SOL's value if you expect cash flow will grow at 12% (annually) for the first 4 years, followed by a constant annual rate of 8% from year 5 to infinity?
Critically evaluate above result and propose whether you should go for this investment opportunity or avoid it?