Exercise

Calculate Value During Projection Period

The FCFE projections are stored in the fcfe data frame. Now that you have an estimate for the cost of equity (ke) of 11.55%, calculate the value as of December 31, 2016 of the FCFE during the projection period.

Instructions

100 XP

Add discount periods to fcfe object.
Calculate the discount factor for each year.
Calculate the present value of each cash flow.
Sum the PVs of each cash flow to calculate the projection period value.