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Initial capex investment of $1.5M at time zero, and $2.3M at time 1, as well as a ramping up of NWC of $0.9M immediately and
Initial capex investment of $1.5M at time zero, and $2.3M at time 1, as well as a ramping up of NWC of $0.9M immediately and and additional increase of $1.4M at time 1 (no more changes in NWC beyond time 1, that cash is never released as it is an infinitely lived project!), your product will be able to generate FCFs of $2.0M for years 2-10, and $0.9M for years 11 and beyond. If the cost of capital is 10%, what is the NPV of this project?
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To calculate the net present value NPV of the project we need to discount the future cash flows to t...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
