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Lilac,IncUses a Discount Rate of 17 Calculate the Value of Business of Lilac,Inc

Question 8

Multiple Choice

Lilac,Inc.uses a discount rate of 17.5% its expected long-term sustainable growth rate is 1.5%.The net cash flows from operations of the company for the previous years are provided below.  Year  Net Cash Flow 2009$190,8352010215,6482011185,962012248,7522013221,960\begin{array} { | l | r | } \hline \text { Year } & \text { Net Cash Flow } \\\hline 2009 & \$ 190,835 \\\hline 2010 & 215,648 \\\hline 2011 & 185,96 \\\hline 2012 & 248,752 \\\hline 2013 & 221,960 \\\hline\end{array} Calculate the value of business of Lilac,Inc.


A) $1,063,160
B) $1,215,040
C) $1,328,950
D) $1,090,420

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