Table 6.8 shows investment and projected income in euros for Flanel's new perfume factory. Forecast cash flows
Question:
Table 6.8 shows investment and projected income in euros for Flanel's new perfume factory. Forecast cash flows and calculate NPV. The nominal cost of capital in euros is 11 percent.
Cost Of CapitalCost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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2 3 6. 1. Capital investment 2. Accumulated depreciation 3. Year-end book value 83.5 - 12.0 35.8 47.7 6.9 54.6 89.1 30.3 5.2 11.9 41.7 16.7 25.0 59.6 23.9 3.2 27.1 62.1 11.9 23.9 59.6 7.6 67.2 47.7 35.8 5.3 41.1 81.0 27.5 5.2 11.9 36.3 14.5 21.8 71.6 83.5 0.0 0.0 0.0 29.7 10.1 5.2 11.9 71.6 4.4 76.0 27.0 9.2 15.5 11.9 -9.6 -3.8 -5.8 4. Working capital 5. Total book value (3 + 4) 6. Sales 7. Cost of goods sold 8. Other costs 9. Depreciation 10. Pretax profit (6 - 7 - 8 - 9) 11. Tax at 40% 12. Profit after tax (10 - 11) 2.3 85.8 2.5 14.4 37.8 12.9 5.2 11.9 7.8 3.1 4.7 51.3 17.4 15.5 11.9 6.4 2.6 3.9 21.1 5.2 11.9 23.9 9.5 14.3 2.5 1.0 1.5 4.8 7.2
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Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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