Corporation forecasts the free cash flows

jagguarpaw January 6, 2017 0 Comments

V Corporation forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 16.5% 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, to the nearest million dollars?

Year 1 2 3
Free Cash Flow -$20 $42 $48