For years 0-4 and then calculate NPV please!
This is a screenshot of the whole question and here's a copy/paste:
Assume that in the original Ityesi example in Table
(see table)
, all sales actually occur in the United States and are projected to be
$ 55.2$55.2
million per year for four years. Keeping other costs the same, calculate the NPV of the investment opportunity. Assume the WACC is
6.7 %6.7%.
The forward exchange rates are given below.
Year | 0 | 1 | 2 | 3 | 4 |
Forward Exchange Rate ($/pound) | 1.46681.4668 | 1.68521.6852 | 1.50221.5022 | 1.54711.5471 | 1.47761.4776 |
Calcualte the cash flows below:(Round to three decimal places. Forward exchange rates must be rounded to four decimal places.)
Year | 0 |
Free cash flow (millons of pounds) | |
Forward exchange rate | |
Free cash flow (millons of dollars) | |
Sales in the US (millons of dollars) | |
Cash flow (millons of dollars) | |
Homework: Unit 8 Homework Save HW Score: 58.18%, 5.82 of 10 p Score: 0 of 2 pts 3 of 5 (4 complete) P31-13 (similar to) E Question Help Assume that in the original Ityesi example in Table 9, all sales actually occur in the United States and are projected to be $55.2 million per year for four years. Keeping other costs the same, calculate the NPV of the investment opportunity. Assume the WACC is 6.7%. The forward exchange rates are given below. Data Table Year 3 4 1.5022 1.5471 Forward Exchange Rate (S/) 1.4668 1.6852 1.4776 Calcualte the cash flows below: (Round to three decimal places. Forward exchange rates must be rounded to four decimal places.) TABLE 31.1 Expected Foreign Free Cash Flows from Ityesi's U.K. Project Year SPREADSHEET Free cash flow (millons of pounds) Year 2 3 4 Forward exchange rate Incremental Earnings Forecast ( millions) 1 Sales 37.500 37.500 37.500 37.500 Free cash flow (millons of dollars) 2 Cost of Goods Sold (15.625) (15.625) (15.625) (15.625) Sales in the Us (millons of dollars) 3 Gross Profit 4 Operating Expenses 5 Depreciation 6 EBIT 7 Income tax at 40% 21.875 21.875 21.875 21.875 Cash flow (millons of dollars) (4.167) (5.625) (5.625) (5.625) (5.625) (3.750) (3.750) (3.750) (3.750) 12.500 12.500 (4.167) 12.500 12.500 (5.000) (5.000) 1.667 (5.000) (5.000) Unlevered Net Income (2.500) 8. 7.500 7.500 7.500 7.500 Free Cash Flow 9 Plus: Depreciation 3.750 3.750 3.750 3.750 (15.000) 10 Less: Capital Expenditures 11 Less: Increases in NWC (17.500) Pound Free Cash Flow 11.250 11.250 11.250 11.250 12 Enter any number in the edit fields and then click Check Answer. parts remaining Homework: Unit 8 Homework Save HW Score: 58.18%, 5.82 of 10 p Score: 0 of 2 pts 3 of 5 (4 complete) P31-13 (similar to) E Question Help Assume that in the original Ityesi example in Table 9, all sales actually occur in the United States and are projected to be $55.2 million per year for four years. Keeping other costs the same, calculate the NPV of the investment opportunity. Assume the WACC is 6.7%. The forward exchange rates are given below. Data Table Year 3 4 1.5022 1.5471 Forward Exchange Rate (S/) 1.4668 1.6852 1.4776 Calcualte the cash flows below: (Round to three decimal places. Forward exchange rates must be rounded to four decimal places.) TABLE 31.1 Expected Foreign Free Cash Flows from Ityesi's U.K. Project Year SPREADSHEET Free cash flow (millons of pounds) Year 2 3 4 Forward exchange rate Incremental Earnings Forecast ( millions) 1 Sales 37.500 37.500 37.500 37.500 Free cash flow (millons of dollars) 2 Cost of Goods Sold (15.625) (15.625) (15.625) (15.625) Sales in the Us (millons of dollars) 3 Gross Profit 4 Operating Expenses 5 Depreciation 6 EBIT 7 Income tax at 40% 21.875 21.875 21.875 21.875 Cash flow (millons of dollars) (4.167) (5.625) (5.625) (5.625) (5.625) (3.750) (3.750) (3.750) (3.750) 12.500 12.500 (4.167) 12.500 12.500 (5.000) (5.000) 1.667 (5.000) (5.000) Unlevered Net Income (2.500) 8. 7.500 7.500 7.500 7.500 Free Cash Flow 9 Plus: Depreciation 3.750 3.750 3.750 3.750 (15.000) 10 Less: Capital Expenditures 11 Less: Increases in NWC (17.500) Pound Free Cash Flow 11.250 11.250 11.250 11.250 12 Enter any number in the edit fields and then click Check Answer. parts remaining