Based upon the information below, what is the value of the company as of 1/1/2021 (use the APV model). 2018 FCF $6,000,000 2019 FCF $6,600,000 2020 FCF $6,800.000 2021 FCF $5,500,000 2022 FCF $5,800,000 2023 FCF $6,000,000 2024 FCF $6,700,000 2018 Tax Shield $250,000 2019 Tax Shield $270.000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Based upon the information below, what is the value of the
company as of 1/1/2021 (use the APV model).
2018 FCF $6,000,000
2019 FCF $6,600,000
2020 FCF $6,800.000
2021 FCF $5,500,000
2022 FCF $5,800,000
2023 FCF $6,000,000
2024 FCF $6,700,000
2018 Tax Shield $250,000
2019 Tax Shield $270,000
2020 Tax Shield $280,000
2021 Tax Shield $290,000
2022 Tax Shield $310,000
2023 Tax Shield $320,000
2024 Tax Shield $340,000
Terminal growth rate: 1.5%
Discount rate: 8%
100,157,709
95,609,163
101,594,609
80,184,086
Transcribed Image Text:Based upon the information below, what is the value of the company as of 1/1/2021 (use the APV model). 2018 FCF $6,000,000 2019 FCF $6,600,000 2020 FCF $6,800.000 2021 FCF $5,500,000 2022 FCF $5,800,000 2023 FCF $6,000,000 2024 FCF $6,700,000 2018 Tax Shield $250,000 2019 Tax Shield $270,000 2020 Tax Shield $280,000 2021 Tax Shield $290,000 2022 Tax Shield $310,000 2023 Tax Shield $320,000 2024 Tax Shield $340,000 Terminal growth rate: 1.5% Discount rate: 8% 100,157,709 95,609,163 101,594,609 80,184,086
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