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Given the following cash flows for projects A and B . A : ( $ 9 0 0 0 , $ 9 0 0 ,
Given the following cash flows for projects A and
: $$$$$
: $$$$$$
If the required rate of return for the project is The NPV of the project B is
Given the following cash flows for projects A and
: $$$$$
: $$$$$$
If the required rate of return for the project is The NPV of the project B is
Aunt Sally's Sauces Inc., is considering expansion into a new line of allnatural, cholesterolfree, sodiumfree, fatfree, lowcalorie tomato sauces. Sally has paid $ for a marketing study which indicates that the new product line would have sales of $ per year for the next six years. Manufacturing plant and equipment would cost $ and will be depreciated using the followin annual depreciation rates: The fixed assets will have no market value at the end of six years. Annual fixed costs are projected at $ and variable costs are projected at of sales. Net operating working capital requirements are $ for the sixyear life of the project; the outlay for working capital will be recovered at the end of six years. Aunt Sally's tax rate is and the firm requires a return. The projected Free Cash FlowFCF in the rd year is
Given the following cash flows for projects A and
: $$$$$
: $$$$$$
If the required rate of return for the project is The NPV of the project B is
Given the following cash flows for projects A and
: $$$$$
: $$$$$$
If the required rate of return for the project is The NPV of the project B is
Given the following cash flows for projects A and
: $$$$$
: $$$$$$
If the required rate of return for the project is The NPV of the project B is
Aunt Sally's Sauces Inc., is considering expansion into a new line of allnatural, cholesterolfree, sodiumfree, fatfree, lowcalorie tomato sauces. Sally has paid $ for a marketing study which indicates that the new product line would have sales of $ per year for the next six years. Manufacturing plant and equipment would cost $ and will be depreciated using the followin annual depreciation rates: The fixed assets will have no market value at the end of six years. Annual fixed costs are projected at $ and variable costs are projected at of sales. Net operating working capital requirements are $ for the sixyear life of the project; the outlay for working capital will be recovered at the end of six years. Aunt Sally's tax rate is and the firm requires a return. The projected Free Cash FlowFCF in the rd year is
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