You are trying to estimate the value of the XYZ Inc company, as of the end of 2018. The after-tax cashflow from assets (FCFF) for the year ending 2018 is $145 million. The estimated WACC is 10%. What comes closest to the current value of the firm XYZ if the cashflow from assets are expected to grow at a constant rate of 2% in the future? O 1849 million 1479 million 2113 million 1813 million 1450 million

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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You are trying to estimate the value of the XYZ Inc. company, as of the end of 2018. The after-tax
cashflow from assets (FCFF) for the year ending 2018 is $145 million. The estimated WACC is 10%,
What comes closest to the current value of the firm XYZ if the cashflow from assets are expected to grow
at a constant rate of 2% in the future?
1849 million
1479 million
2113 million
1813 million
1450 million
Transcribed Image Text:You are trying to estimate the value of the XYZ Inc. company, as of the end of 2018. The after-tax cashflow from assets (FCFF) for the year ending 2018 is $145 million. The estimated WACC is 10%, What comes closest to the current value of the firm XYZ if the cashflow from assets are expected to grow at a constant rate of 2% in the future? 1849 million 1479 million 2113 million 1813 million 1450 million
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