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please answer question 6 urgent Cash flow determination and Internal Rate of Return Consider the following investment project. It has a 3-year life; initial investment
please answer question 6 urgent
Cash flow determination and Internal Rate of Return Consider the following investment project. It has a 3-year life; initial investment is euro330,000; depreciation is straight-line to zero salvage value. Calculate: (a) Free Cash Flow in year 1 (b) Free Cash Flow in year 2 (c) Free Cash Flow in year 3 (d) Internal Rate of Return Net Present Value and Internal Rate of Return You are analyzing an investment decision in which you have to make an initial investment of euro 377.500 and you will be generating annual cash flows to the firm of euro 95.200 starting a year from now. and growing thereafter at 4% a year forever. a. Estimate the NPV of this, assuming a cost of capital (discount rate) of 12%. b. Estimate the IRR of this projectStep by Step Solution
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