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A retail coffee company is planning to open 110 new coffee outlets that are expected to generate $14.3 million in free cash flows per year,
A retail coffee company is planning to open 110 new coffee outlets that are expected to generate $14.3 million in free cash flows per year, with a growth rate of 2.6% in perpetuity. If the coffee company's WACC is 10.2%, what is the NPV of this expansion? The present value of the free cash flows is $ million. (Round to two decimal places.)
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
