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A firm has projected the following financials for a possible project: YEAR 0 1 2 3 4 5 Sales 1 2 4 , 0 2
A firm has projected the following financials for a possible project:
YEAR
Sales
Cost of Goods
S&A
Depreciation
Investment in NWC
Investment in Gross PPE
The firm has a capital structure of debt and equity. The cost of debt is while the cost of equity is estimated at The tax rate facing the firm is Assume that you can't recover the final NWC position in year ie only consider the change in NWC for each year
What is the NPV of the project? Hint: Be careful about rounding the WACC here!
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Answer format: Currency: Round to: decimal places.
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