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4. You are evaluating a company and you have created a DCF model of its cash...

4. You are evaluating a company and you have created a DCF model of its cash flows. You have also calculated its rwacc to be 9%. You have estimated the following free cash flows: $1MM at year 1, $2 MM at year 2, $2.5 MM at year 3. After year 3, the cash flow will grow at 3% every year forever. What is the enterprise value (in MM)?

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Calculation of Enterprise value Rukce = 91 cash flows yearly Cash flows (in $MM) Prosent value (Ax8) 0.91743 DU Fodor @g/ 0.9

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