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5. Vasudevan Inc. forecasts the free cash flows (in millions) shown
below. If the weighted average cost of capital is 13% and the free cash
flows are expected to continue growing at the same rate after Year 3 as
from Year 2 to Year 3, what is the Year 0 value of operations, in
millions?
Year: 1 2 3
Free cash flow: -$20 $42 $45
a. $586
b. $617
c. $648
d. $680
e. $714
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FIN 534 Week 7 DQ 2
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Week 7 discussion 2