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Please provide correct answer 6. (4 points) Determine FCFs for a project with the following characteristics. It will last for 3 years (years 1 through
Please provide correct answer
6. (4 points) Determine FCFs for a project with the following characteristics. It will last for 3 years (years 1 through 3 ); right at the start (year 0 ) it requires purchasing equipment worth $5m, which is depreciated straight-line over a 5 -year period. At the end of year 3 the equipment will be sold for $3m. Unlevered net income is expected to be equal to $1m,$5m, and $7m in years 1,2 , and 3 respectively. For NWC requirements use values you compute in problem 5 (if you were not able to complete problem 5, assume the following values for NWC: $0.15m,$0.20 and $0.16m in years 1,2 and 3 respectively). Corporate tax rate is 40%. Please present your solution in the following table (note that the table possibly contains more rows/columns than you need)(week 7 part 4)Step by Step Solution
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