22. Project Evaluation. Suppose that Blooper's customers paid their bills with an average 3-month delay (instead of

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22. Project Evaluation. Suppose that Blooper's customers paid their bills with an average 3-month delay (instead of 2 months) and that Blooper's inventories were 20% rather than 15% of next year's expenses. (LO4)

a. Would project NPV be higher or lower than that in the worked example in the chapter?

b. Calculate Blooper's working capital in each year of its project.

c. What is the change in project NPV (use the Blooper spreadsheet)?

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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