What is the value of this firm if the weighted average cost


A company has projected this information over each of the next 3 years. Year 1 Year 2 Year 3 Sales $550,540 $840,550 $652,250 Costs $120,400 $202,350 $184,350 Depreciation $14,574 $35,541 $24,541 EBIT $415,386 $602,659 $443,359 Taxes (34%) $141,231 $204,904 $150,742 CAPEX $22,548 $31,541 $28,541 Increases in NWC $12,540 $13,647 $12,980 After year 3, the company anticipates maintaining a future free cash flow that is equal to the third year’s free cash flow indefinitely. What is the value of this firm if the weighted average cost of capital is 10%?

$2,829,325

$1,984,525

$2,668,484

$1,845,541

$3,510,189

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Financial Management: What is the value of this firm if the weighted average cost
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