Ebookebook problem walk-throughproblem walk-through dantzler corporation is a fast-growing supplier of office products. analysts project the following free cash flows (fcfs) during the next 3 years, after which fcf is expected to grow at a constant 7% rate. dantzler's wacc is 15%. year 0 1 2 3fcf ($ millions) - $17 $18 $53 what is dantzler's horizon, or continuing, value? (hint: find the value of all free cash flows beyond year 3 discounted back to year 3.) enter your answer in millions. for example, an answer of $13,550,000 should be entered as 13.55. do not round intermediate calculations. round your answer to two decimal places. $ million what is the firm's market value today? assume that dantzler has zero non-operating assets. enter your answer in millions. for example, an answer of $13,550,000 should be entered as 13.55. do not round intermediate calculations. round your answer to two decimal places.

Suppose that the firm cherryblossom has an orchard they are willing to sell today. the net annual returns to the orchard are expected to be $50,000 per year for the next 20 years. at the end of 20 years, it is expected the land will sell for $30,000. calculate the market value of the orchard if the market rate of return on comparable investments is 16%.

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.