What is the value of a company with the following cash flows?
Year1 – $3 million
Year 2 – $6 million
Year 3 – $2 million
Years 4 – 10 – $2.5 million year 4, growing at 30% annually through year 10
Year 11 – 8% annual growth from year 10 cash flow indefinitely
WACC of 11.5%
What is the value of a company with the following cash flows?
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