The projected Cash Flow of ABC Limited is as following: Year Cash Flow DCF@20% 1 700000 0.833 2 900000 0.694 3 1100000 0.578 4 1300000 0.482 5 1500000 0.401 Assuming the Discount Rate for ABC Limited to be 20%. Terminal

Step 1: Calculation of Present Value (PV) of Cash Flow Year Cash Flow Discount Factor @ 20% Present Value (PV) of Cash Flow (₹) 1 700000 0.833 583100 2 900000 0.694 624600 3 1100000 0.578 635800 4 1300000 0.482 626600 5 1500000 0.401 601500 Sum of PV cash flows 3071600 Step 2: PV Terminal Value in year of exit ₹1800000 * 0.401 = ₹721800 Step 3: Total Present Value Total Present Value of cash flow of ABC Limited = Sum of PV Cash Flows + PV Terminal Value = 3071600 + 721800 = ₹3793400