1- If ABC company has FCF (free cash flows) of $2,000, $3,000,
and $4,000 at the...
1- If ABC company has FCF (free cash flows) of $2,000, $3,000,
and $4,000 at the end of years 1, 2, and 3. And the discount rate
is 20%. Assuming the present value (PV) of the firm is $9672.50.
What is its terminal value? and What is the present value of its
terminal value (TV)?
2- There are 200 barrels of oil that can be extracted from a
field and the price of doing it is $6,000. You presume
that the...
You forecast the free cash flows for your target firm over the
next five years. The...
You forecast the free cash flows for your target firm over the
next five years. The final cash flow, at the end of year five, is
projected to be $200 million.
Assuming a FCF terminal growth rate of 3% and an overall
discount rate of 12%, what is the present valueof
all future cash flows after the planning period? (Hint: do not
forget to discount to today.)
Dusty Wallace will receive $8,000 and $9,000 at the end of the
next two years respectively....
Dusty Wallace will receive $8,000 and $9,000 at the end of the
next two years respectively. Then from the end of the third year
through the end of the tenth year, he will receive an annuity of
$10,000. At a discount rate of 8% what is the present value of all
future benefits? (10)
You will be receiving cash flows of: $2,000 today, $2,000 at the
end of year 1,...
You will be receiving cash flows of: $2,000 today, $2,000 at the
end of year 1, $3,000 at the end of year 3, and $6,000 at the end
of year 5. What is the net present value of these cash flows at an
interest rate of 4%?
A firm has projected free cash flows of $575,000 for Year 1,
$625,000 for Year 2,...
A firm has projected free cash flows of $575,000 for Year 1,
$625,000 for Year 2, and 750,000 for Year 3. The projected terminal
value at the end of Year 3 is $8,000,000. The firm's Weighted
Average cost of Capital (WACC) is 12.5%.
Please post the answer in an Excel Document
Determine the Discounted Cash Flow (DCF) value of the
firm.
Recommend acceptance of this project using net present value
criteria.
Display your calculations.
Go
Corp. expects free cash flows of $1,000,000, $1,100,000,
$1,200,000, $1,300,000, $1,400,000, in years 1,2 3,4,...
Go
Corp. expects free cash flows of $1,000,000, $1,100,000,
$1,200,000, $1,300,000, $1,400,000, in years 1,2 3,4, 5
respectively. In addition, Go has a continuing value of $2,500,000
at the end of year 5 and a cost of capital of 9%. Assuming year end
cash flows, please open an excel spreadsheet enter the numbers
above (in year 5 – you will have to sum the cash flow and the
continuing value). Then use the NPV function to bring these yearly
cash...
Firm C is considering the acquisition of Firm T. Firm C has
estimated the cash flows,...
Firm C is considering the acquisition of Firm T. Firm C has
estimated the cash flows, cost of capital, and growth rate for firm
T shown below.
Answer the following questions to estimate the current value of
firm T using the terminal value (aka horizon value) technique.
Cash flows, cost of capital, and growth rate for firm T
Year 1
Year 2
Year 3
Year 4
CF
$12,100
$13,500
$16,300
$18,400
WACC = 10%, g = 3% (assumed constant following...