Reizenstein Technologies (RT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, RT is expected to experience a 19% annual growth rate for the next 5 years. By the end of 5 years, other firms will have developed comparable technology, and RT's growth rate will slow to 8% per year indefinitely. RT has a 15% weighted average cost of capital. The most recent annual free cash flow (FCF0) was $1.55 million. For every question below, enter your answer in millions. Round your answers to two decimal places. /!\ Be mindful of rounding errors! Rounding intermediary calculations may lead to slight errors. Calculate RT's expected FCFs for t = 5. Do not round intermediate calculations. Answer What is the horizon value at t = 5 (HV5)? Do not round intermediate calculations. Answer What is the present value of the horizon value (HV5)? Do not round intermediate calculations. Answer What is the present value of the free cash flows expected at t = 1, t = 2, t = 3, t = 4, and t = 5? Do not round intermediate calculations. What is the value of operations at t = 0? Do not round intermediate calculations.
Reizenstein Technologies (RT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, RT is expected to experience a 19% annual growth rate for the next 5 years. By the end of 5 years, other firms will have developed comparable technology, and RT's growth rate will slow to 8% per year indefinitely. RT has a 15% weighted average cost of capital. The most recent annual
For every question below, enter your answer in millions. Round your answers to two decimal places.
/!\ Be mindful of rounding errors! Rounding intermediary calculations may lead to slight errors.
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Calculate RT's expected FCFs for t = 5. Do not round intermediate calculations. |
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What is the horizon value at t = 5 (HV5)? Do not round intermediate calculations.
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What is the present value of the horizon value (HV5)? Do not round intermediate calculations. |
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What is the present value of the free cash flows expected at t = 1, t = 2, t = 3, t = 4, and t = 5? Do not round intermediate calculations. |
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What is the value of operations at t = 0? Do not round intermediate calculations. |
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