Question
Assume an initial level of NWC of $100 in 2020 and an initial outlay of $2,500 in 2020 and assuming a WACC of 6%, calculate
Assume an initial level of NWC of $100 in 2020 and an initial outlay of $2,500 in 2020
and assuming a WACC of 6%, calculate the NPV.
2021 2022
Revenue 25,000 27,000
Production Costs 14000 15,000
Depreciation 500 800
Total Production Costs 14,500 15,800
Selling, General & Administrative 4,000 4,400
Cash 1200 1140
Accruals 1065 1000
Capital Expenditures 700 850
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
