Question: You are using DCF to value a firm. Next year you predict free cash flows of $1 million. The second-year free cash flows are estimated

You are using DCF to value a firm. Next year you predict free cash flows of $1 million. The second-year free cash flows are estimated at $1.3 million. The next year after that you feel free cash flows will grow forever at 3%. If you have a discount rate of 13%, what is the value of this firm?

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