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1 2 . You are evaluating a short term transaction, acquiring a public company implementing several business enhancements before attempting to exit five years later.
You are evaluating a short term transaction, acquiring a public company implementing several business enhancements before attempting to exit five years later. All numbers are in thousands. Initial equity investment would be $ and the remaining required capital would be borrowed. Free cash flows to equity after debt service, taxes, capex, etc. for years through from the business would be $ $ $ $ and $ respectively. The cash flow from sale after paying off the debt, realized in year would be $ Using an equity required rate of return of calculate the NPV of this investment and the IRR, respectively.
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