Buff Canyon Enterprise (BCE) is evaluating a project, and your co-worker wants you to double-check his work on the termi
Posted: Mon Apr 25, 2022 8:35 am
Buff Canyon Enterprise (BCE) is evaluating a project, and your
co-worker wants you to double-check his work on the terminal value.
BCE has a discount rate of 12%. The free cash flow in year 6 is
$5,000,000 and the FCF is expected to grow forever at 3% after year
6. What is the present value (in year 0) of the project’s terminal
value? (Hint: Draw out a timeline)
co-worker wants you to double-check his work on the terminal value.
BCE has a discount rate of 12%. The free cash flow in year 6 is
$5,000,000 and the FCF is expected to grow forever at 3% after year
6. What is the present value (in year 0) of the project’s terminal
value? (Hint: Draw out a timeline)