Estimate a venture's terminal value based on the following information: current year's net sales = $500,000; next year's expected cash flow = $16,000; constant future growth rate = 10%; and venture investors' required rate of return = 20%.
A) $156,846
B) $285,714
C) $200,000
D) $150,000
E) $160,000

Question

Quizplus · Accepted Answer

The Answer of Estimate a venture's terminal value based on the following information: current year's net sales = $500,000; next year's expected cash flow = $16,000; constant future growth rate = 10%; and venture investors' required rate of return = 20%.
A) $156,846
B) $285,714
C) $200,000
D) $150,000
E) $160,000

Estimate a Venture's Terminal Value Based on the Following Information