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PorterOlaph PorterOlaph
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6 years ago
Lilac, Inc. uses a discount rate of 17.5% its expected long-term sustainable growth rate is 1.5%. The net cash flows from operations of the company for the previous years are provided below.

Year   Net Cash Flow
2009   $190,835
2010   215,648
2011   185,965
2012   248,752
2013   221,960

Calculate the value of business of Lilac, Inc.
A) $1,063,160
B) $1,215,040
C) $1,328,950
D) $1,090,420
Textbook 
Forensic Accounting

Forensic Accounting


Edition: 1st
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discovrndiscovrn
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6 years ago
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PorterOlaph Author
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6 years ago
Upwards Arrow Correct. The reason you provided helped the most
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