Termination or continuation value of a project


Problem:

What would be the termination or continuation value of a project at year six if the year six free cash flow is $167.91, the growth rate of these free cash flows is expected to be a constant 3%, and the appropriate discount rate or cost of capital is 7%.

Note: Please describe comprehensively and give step by step solution.

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Finance Basics: Termination or continuation value of a project
Reference No:- TGS0877848

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