Given the Following Inputs,compute the Continuing Value (CV )At Time

Given the following inputs,compute the continuing value (CV ) at time t in the economic-profit model.At time t invested capital equals $2,000 and ROIC equals 12 percent.The forecast for NOPLATt?? is $240.The growth rate equals 2 percent,RONIC is 10 percent,and the WACC is 7 percent.The continuing value at time t is closest to:

A) $1,840.0
B) $1,428.6
C) $822.8
D) $411.4

Correct Answer:

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