1-What is the Firm Value (as of the end of December 2019) of Firm X if the firm where not to do the expansion?

2--"True or False: Firm X should do the expansion (according to the NPV). Recall the Value of Firm X if the expansion is performed is estimated to be $306,769,521."

True

False

Firm X is considering performing a considerable investment in year 2020. The value of Firm X(as of the end of 2019) if the investment is done is estimated at $306,769,521. Table II.a 2019 2020 2021 2022 2023 2024 5,233,648 5,235,964 5,238,839 5,242,190 Firm Value: Not doing the Expansion Free Cash Flow of Firm EBITDA Interest Tax Shield 5,245,946 7,643,182 60,000 60,000 60,000 60,000 60,000