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PLEASE FULLY ANSWER ALL PARTS. IM SORRY BUT I AM STILL CONFUSED AND CHEGG EXPERTS ARE JUST NOT HELPING. IF YOU CAN'T SOLVE EVERYTHING
PLEASE FULLY ANSWER ALL PARTS. IM SORRY BUT I AM STILL CONFUSED AND CHEGG EXPERTS" ARE JUST NOT HELPING. IF YOU CAN'T SOLVE EVERYTHING PLEASE DON'T ATTEMPT.
Arnold Inc. is considering a proposal to manufacture highend protein bars used as food supplements by body builders. The project requires use of an existing warehouse, which the firm acquired three years ago for $ million and which it currently rents out for $ Rental rates are not expected to change going forward. In addition to using the warehouse, the project requires an upfront investment into machines and other equipment of $ million. This investment can be fully depreciated straightline over the next years for tax purposes. However, Arold Inc. expects to terminate the project at the end of eight years and to sell the machines and equipment for $ Finally, the project requires an initial investment into net working capital equal to of predicted firstyear sales. Subsequently, net working capital is of the predicted sales over the following year. Sales of protein bars are expected to be $ million in the first year and to stay constant for eight years. Total manufacturing costs and operating expenses excluding depreciation are of sales, and profits are taxed at
What are the free cash flows of the project?
The FCF of year is $ million?
The FCF of years is $ million?
The FCF of year is $ million?
If the cost of capital is what is the NPV of the project?
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