1. Suppose that the first cash flow of a venture is expected in Year 7, and expected to be $6,800,558. Cash flows will grow at a rate of 3% after that. Find the present value of the venture in dollars (at Year 0) assuming a discount rate of 26%.
2. Suppose that the first cash flow of a venture is expected in Year 9, and expected to be $1,766,624. Cash flows will grow at a rate of 3% after that. Find the present value of the venture in dollars (at Year 0) assuming a discount rate of 26%.
3. Suppose a venture's first cash flow is expected in Year 5, and the cash flow is expected to be 464,455. A comparable firm has earnings of 25,851,200 and a market cap of 511,423,042. Assuming a discount rate of 16%, find the present value (at Year 0) of the firm in dollars.