should the terminal cashflow be used to calculate the net present value of a company? Give reasons for your answer.  2. Calculate the net present value (NPV) with the information in the attached table.

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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1. should the terminal cashflow be used to calculate the net present value of a company? Give reasons for your answer. 

2. Calculate the net present value (NPV) with the information in the attached table. 

Year Operating Cash flows
0
1
2
3
4
5
WACC
$ -3,280,000
$273,450
$397, 350
$265, 190
$278,194
$278,194
Terminal Cash Flow
$1,194,472
7.83%
Transcribed Image Text:Year Operating Cash flows 0 1 2 3 4 5 WACC $ -3,280,000 $273,450 $397, 350 $265, 190 $278,194 $278,194 Terminal Cash Flow $1,194,472 7.83%
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