Question
A retail coffee company is planning to open 100 new coffee outlets that are expected to generate, in total, $15 million in free cash flows
A retail coffee company is planning to open 100 new coffee outlets that are expected to generate, in total, $15 million in free cash flows per year, with a growth rate of 3% in perpetuity. If the coffee company's WACC is 10%, what is the NPV of this expansion?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
