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Find the current value of the operations

Question:

A company forecasts free cash flows in one year to be (negative) -$10 Million and free cash flow in two years to be $20 Million. After the second year, free cash flow will grow at a constant rate of 4% per year for the foreseeable future. If the overall cost of capital is 14%, what is the current value of the operations?

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Finance Basics: Find the current value of the operations

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