Question
Calculate and interpret the net present value (NPV) of the companies' annual free cash flow (FCF) for a 5 year period (nper) taking into account
Calculate and interpret the net present value (NPV) of the companies' annual free cash flow (FCF) for a 5 year period (nper) taking into account a constant growth rate (which will need to be calculated), and a discount rate that is equal to your companies weighted average cost of capital (WACC), which is 7%.
http://www.investopedia.com/articles/fundamental-analysis/11/present-value-free-cash-flow.asp
***** CalculateNPV,IRR, andPaybackfor 2 companies. *****
The 2 companies are
a. Jones Soda
https://finance.yahoo.com/quote/JSDA/financials?p=JSDA
b. Reeds Soda
https://finance.yahoo.com/quote/reed?ltr=1
Please provide me a detailed of the calculations and how did you get the result. Not only the final answers.
Thanks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started