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Allison's Is Expected to Have Annual Free Cash Flow of $62,000,$65,400,and

Question 87

Multiple Choice

Allison's is expected to have annual free cash flow of $62,000,$65,400,and $68,900 for the next three years,respectively.After that,the free cash flow is expected to increase at a constant rate of 2 percent per year.At a discount rate of 14.5 percent,what is the present value of this firm?


A) $469,118
B) $603,509
C) $577,088
D) $524,467
E) $497,364

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