1. Calculate the free cash flow for your company over the period 2010-2015

2. Calculate the value of a project proposal that will last over the period 2010 through 2015

a. Calculation you will need to include a calculation of beta, which is your firm’s index of systematic risk.

b. The weighted average cost of capital.

c. Explain how Bloomberg calculates the WACC.

3. Calculate the present value of the free cash flows over the period 2010-2015.

4. Discuss the advantages and limitations of each of the above approaches to calculating the discount rate