Question
Hi! I need help with these 2 problems from a Coursera's course. I think more or less how to do it but maybe because I
Hi! I need help with these 2 problems from a Coursera's course. I think more or less how to do it but maybe because I need a really accurate answer with the coursera standard I can't obtain it.
Thanks so much!
Problem 2. ChemTech - Free Cash Flow 1
Continuing from Problem 1, at the end of the first year, Chemtec is expecting sales of
$250million and costs of$125million. There are no more required investments in either net working capital or plant and equipment. However, the existing plant and equipment will experience$50million of depreciation.
Assume that Chemtec's marginal tax rate on earnings is
35%.
Assuming that all of these cash flow occur at the end of the first year, what is the first year's free cash flow?
*Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.
3.
Problem 3. Jones - NPV
Jones Corp is evaluating a project that has the following annual free cash flows:
Period 0 1 2
Free Cash Flow 150 100 150
If the project's discount rate is 12%, then what is the NPV of the project?
*Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.
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