Young & Liu Inc.'s free cash flow during the just-ended year (t = 0) was $100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions? I have came up with an answer of 1.050M, but because I am not good with Excel I am not sure n how to enter this as a formula, please show detail information. I kep gatting "VALUE" error. If t can be done, if not I will just leave it as is. Thank you in advance.

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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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