man.4 2A company forecasts growth of 6 percent for the next five years and 3 percent thereafter. Given last year's free cash flow was $106, what is its horizonvalue (PV looking forward from year 4) if the company cost of capital is 8 percent?Multiple CholceO$1,773$2,161$2,837

Growth rate for first 5 years = 6%Growth rate after 5 years = 3%Free cash flows in year 0 = $106Cost…

A company forecasts growth of 6 percent for the next five years and 3 percent thereafter. Given last year's free cash flow was $106, what is its horiz value (PV looking forward from year 4) if the company cost of capital is 8 percent? Multiple Choice $2,161 $2,837

A company forecasts growth of 6 percent for the next five years and 3 percent thereafter. Given last year's free cash flow was $106, what is its horiz value (PV looking forward from year 4) if the company cost of capital is 8 percent? Multiple Choice $2,161 $2,837

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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man.4

2
A company forecasts growth of 6 percent for the next five years and 3 percent thereafter. Given last year's free cash flow was $106, what is its horizon
value (PV looking forward from year 4) if the company cost of capital is 8 percent?
Multiple Cholce
O
$1,773
$2,161
$2,837

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