Grayson Scaffolding Inc

question 3

Multiple Choice

Grayson Scaffolding Inc. has a cost of capital of 9% and the following free cash flow projections over their five-year planning horizon: $3.4 million, 3.8 million, $4.5 million, $4.9 million, and $5.2 million. Using free cash flows, what is the total business value?

• A) $28.4 million
• B) $37.5 million
• C) $54.2 million
• D) $57.8 million
• E) $74.4 million

---

Definitions:

Humerus

The long bone in the upper arm or forelimb extending from the shoulder to the elbow.

Collar Bone

Also known as the clavicle, it is a long bone that serves as a strut between the shoulder blade and the sternum or breastbone.

Clavicle

A bone in the human body also known as the collarbone, connecting the arm to the body.

Rib Cage

The bony structure surrounding the chest cavity that protects the heart and lungs, consisting of ribs, sternum, and part of the vertebral column.