Given Discount rate 14% Year 5 multiple                           5.00 Debt  $        2,100,000     Year Cash flows 1  $        1,100,000 2             1,149,500 3             1,201,228 4             1,255,283 5             1,311,770     Solution a.  Enterprise Value   b.  Equity Value

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
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Given
Discount rate 14%
Year 5 multiple                           5.00
Debt  $        2,100,000
   
Year Cash flows
1  $        1,100,000
2             1,149,500
3             1,201,228
4             1,255,283
5             1,311,770
   
Solution
a.  Enterprise Value  
b.  Equity Value  
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