Compute the value of a firm with free cash flows of $4 000, $4 500 and $5 000 over the next three years, a terminal firm value of $60 000 after three years, and the unlevered cost of capital is 10%. Assume that the interest rate tax shield is zero.
A) $58 098
B) $56 191
C) $59 123
D) $57 234
Correct Answer:
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