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Valuation Using Free Cash Flow. The following free cash flows (in $ Million) are projected for the next five

Valuation Using Free Cash Flow. The following free cash flows (in $ Million) are projected for the next five years. The free cash flows are expected to grow at a stable rate of 7% for every year after year 5. The opportunity cost of capital is 10%.

Year 1/Free Cash Flow is 5
Year 2/Free Cash Flow is 12
Year 3/Free Cash Flow is 24
Year 4/Free Cash Flow is 44
Year 5/Free Cash Flow is 69

1. Calculate the terminal value of the firm at the end of year 5.
2. Calculate the current value of the firm using the constant growth model after year 5.

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