Answer:
$181,818,181.82
Explanation:
The computation of the current value of this firm is shown below:
= (Firm expectation to earns in cash) ÷ (discount rate - increased cash earning percentage)
= ($10,000,000) ÷ (7.5% - 2%)
= ($10,000,000) ÷ (5.5%)
= $181,818,181.82
In order to find out the current value, we considered all the given information that are mentioned in the question
