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Rubits Inc. has a Free Cash flow of $6.0 million in the current period. FCF will decline by 5.0% for 4 years and then gr...

Rubits Inc. has a Free Cash flow of $6.0 million in the current period. FCF will decline by 5.0% for 4 years and then grow at 2.0% thereafter. What is FCF expected to be in year 10?

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Answer #1

FCF year 10 = current FCF*(1+decline growth rate)^4*(1+increasing growth rate)^6

=6*(1-0.05)^4*(1+0.02)^6

=

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