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A firm plans to buy an asset for $ 1 0 0 , 0 0 0 and will completely depreciate the asset on a straiph
A firm plans to buy an asset for $ and will completely depreciate the asset on a straiph line basis over two years. Operating cash flow from this asset will be $ in each of the next two years. The cost of capital is a What is the investment's NPV Mark b What is the economic valueadded EVA cash flow in years one and two? Mark c What is the project's EVA over its life? Mark d How do your answers to a and c compare? Mark
A firm plans to buy an asset for $ and will completely depreciate the asset on a straiph
line basis over two years. Operating cash flow from this asset will be $ in each of the
next two years. The cost of capital is
a What is the investment's NPV Mark
b What is the economic valueadded EVA cash flow in years one and two? Mark
c What is the project's EVA over its life? Mark
d How do your answers to a and c compare? Mark
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