A company forecasts free cash flow in one year to be -10


A company forecasts free cash flow in one year to be -$10 million and free cash flow in two years to be $20 million. After the second year, free cash flow will grow at a constant rate of 4 percent per year forever. If the overall cost of capital is 14 percent, what is the current value of operations, to the nearest million?

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Financial Management: A company forecasts free cash flow in one year to be -10
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