A company currently expects free cash flow in the upcoming year of $33,000. Each year after that, the free cash flow is expected to grow by 1.5%. The relevant discount rate for the company’s cash flows is 6% per year. From a discounted cash flow method, what is the value of the company?
a. $612,000
b. $733,000
c. $550,000
d. $330,000
e. $2,200,000