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Hi, I am having problems solving these problems. Zhdanov Inc. forecasts that its free cash flow in the coming year, i., at t = 1, will be -$10...

Hi, I am having problems solving these problems.

Zhdanov Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm’s value of operations, in millions?
a. $158
b. $167
c. $175
d. $184

Suppose Leonard, Nixon, & Shull Corporation’s projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company’s weighted average cost of capital is 11%, what is the value of its operations?
a. $1,714,750
b. $1,805,000
c. $1,900,000
d. $2,000,000
e. $2,100,000

Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.
WACC: 10.00%
Year 0 1 2 3
Cash flows -$1,050 $450 $460 $470
a. $ 92.37
b. $ 96.99
c. $101.84
d. $106.93
e. $112.28
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Solution.xlsx

Ans 1
Year Discount
Cash Flows
Cash flow * Discount Factor
Factor
0
1
-10000000
0.8772
-8772000
2
20000000
0.7695
15390000
2
208000000
0.7695 160056000
Net Cash flows
166674000
In Millions FCF =...

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