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PART II: Use the following information to answer questions 1 1 - 1 5 . Firm X is considering performing a considerable investment in year
PART II:
Use the following information to answer questions
Firm X is considering performing a considerable investment in year The value of Firm X as of the end of if the investment is done is estimated at $
Assume a discount factor of for the Free Cash Flows and the Continuation Value, and for the Interest Tax Shield.
Assume that the EBITDA Multiple is
What is the Present Value as of the end of December of the Free Cash Flows forecast of Firm X if the firm where not to do the expansion?"
QUESTION
What is the Present Value as of the end of December of the Continuation Value forecast of Firm X if the firm where not to do the expansion?
QUESTION
What is the Present Value as of the end of December of the Interest Tax Shield forecast of Firm X if the firm where not to do the expansion?
QUESTION
What is the Firm Value as of the end of December of Firm X if the firm where not to do the expansion?
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