The free cash flows in millions shown below are forecast by


The free cash flows (in millions) shown below are forecast by Bailey Brothers. If the weighted average cost of capital is 11%, and FCF is expected to grow at a constant rate of 5% after Year 3 (i.e., Year 4 to infinity) then what is the approximate Value of Operations (Year 0), in millions?

Year: 0 1 2 3 4 . . . .

Free cash flow: -$50 $100 $400

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Finance Basics: The free cash flows in millions shown below are forecast by
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