Sisyphus Corp. has projected that their performance for the next five years results to the following: YEAR Revenue Cash Operating Expenses 1 50 30 2 55.00 33.00 3 60.50 36.30 4 66.55 39.93 5 73.21...

1. Sisyphus Corp. has projected that their performance for the next five years results to the following:

Terminal value was assumed based on the growth rate of the cash flows. The annual Capital investment requirement is at P2 million. The income Tax rate is at 30%. The required rate of return for their business is 14%.

Requirement:

1. How much is the Free Cash Flow for years 1-5?


2. How much is the Discounted Net Cash Flows to the Firm for years 1-5?