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For questions 1 - 3 refer to the following information. ( Round your answer to three decimal places. For example 1 . 2 3 4
For questions refer to the following information. Round your answer
to three decimal places. For example or will be rounded
to while will be rounded to
Company XYZ wants to expand its operations with an aggressive plan. This
plan entails building a new factory. The initial cost is $ million at it
will last years and is depreciated straightline to a book value of Annual
sales and costs will be $ million and $ million respectively in all
years Inventories will rise immediately by $ million. All working capital
components return to original values at the end of the project's life.
Assume tax rate is
Part
If Salvage value of the factory at is $ million. What is the after
tax salvation value?
Part
If Accounts Payable rises immediately by $ million. What is the FCFF at
the beginning of the first year ie at
Part
If Accounts Receivables rise at the end of the first year by $
million. What is the FCFF at the end of the first year ie at
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