Question

Per-share valuation based on KKR's Projections I. PV of cash flow for 1989-1998 Year 1989 1990...

Per-share valuation based on KKR's Projections

I. PV of cash flow for 1989-1998

Year

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

Projected total free cash flow

794

1,299

1,760

2,438

2,909

3,200

3,514

3,861

4,242

4,655

WACC

12.06%

NPV as of year 1989

Homework Answers

Answer #1

Please see the screenshot below.

I have used the "NPV" function of excel to get the output. The cell highlighted in yellow contains the answer. In the adjacent cell i have also mentioned the excel formula used in the yellow highlighted cell to get the NPV.

Hence the NPV = $ 13,951.51

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