hello, my question regards when WC is 15% percent of revenues 5 years forward, why is the growth rate calculated without the 1 before ex 0.06 growth rate. instead it stays 0.06. ex FCFF1=391.38(1-0.36)*(1.06)-(475-461)*(1.06)-13046(0.06)*(0.15)=133.26
if i want to calculate the second year, how to i go about getting the including this in this growth rate? the right FCFF2 should be = 141.25, but i cannot seem to get that number, really would appreciate the help! thanks

Question

hello, my question regards when WC is 15% percent of revenues 5 years forward, why is the growth rate calculated without the 1 before ex 0.06 growth rate. instead it stays 0.06. ex FCFF1=391.38(1-0.36)*(1.06)-(475-461)*(1.06)-13046(0.06)*(0.15)=133.26
if i want to calculate the second year, how to i go about getting the including this in this growth rate? the right FCFF2 should be = 141.25, but i cannot seem to get that number, really would appreciate the help! thanks