Problem:
The net cash flows of Advantage Leasing for the next 3 years are $42,000, $49,000 and $64,000 respectively, after which the growth rate will be a constant 2% with a WACC of 8%.
Requirement:
Question: What is the present value of the terminal value? Note: Please provide step by step solution.
Select one:
• 51,822
• 55,967
• 59,259
• 60,444
• None of these