Question
Assume that a company is going to invest 900,000 USD in a new project. We expect that the invested capital in the fixed assets
Assume that a company is going to invest 900,000 USD in a new project. We expect that the invested capital in the fixed assets will be fully depreciated within 3 years in a linear way. The project is assumed to generate the cash flows 350.000 USD every year. The weighted average cost of capital is 12%. Assume that NOPAT is the difference between the cash flow in each year and the annual depreciation. Compute EVA in each year.
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