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Cashflowtable Year Cash Flow 2014 $1,500,000 2015 $2,300,000 2016 $3,000,000 2017 $3,400,000 2018 $1,800,000 Calculate geometric total return Annualized rate of return Prepare a 10
Cashflowtable
Year Cash Flow
2014 $1,500,000
2015 $2,300,000
2016 $3,000,000
2017 $3,400,000
2018 $1,800,000
- Calculate geometric total return
- Annualized rate of return
- Prepare a 10 year cash flow forecast based upon the annualized rate of growth in cash flow
- Calculate the net present value of the forecasted cash flows assuming an immediate investment cost of $18,500,000
- Estimate cost of capital using the following data:
- Market value of debt - $600,000
- Market value of equity - $1, 400,000
- Current yield on debt - 7.3%
- Tax rate - 35%
- Expected market return - 12%
- Current 10 year US Treasury - 3.8%
- Beta - 2.1
- Estimate cost of capital using the following data:
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