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Pls explain how to get answer without excel Question 4 0/1 point Consider a project that will generate free cash flows at year 1 of
Pls explain how to get answer without excel
Question 4 0/1 point Consider a project that will generate free cash flows at year 1 of either $70,800,000 or $26,300,000. The probability of generating $70,800,000 is 76%. The probability of generating $26,300,000 is (1 - 76/100). The project requires an initial investment of $14,300,000 today. The project's cost of capital is 11.3%. The risk-free rate of interest is 5.5%. There are no taxes and no other imperfections. What is the NPV of the project? Your answer should be accurate to two decimal places. Answer: x (39,716,172.51) Question 5 0 / 1 point ABC Inc. will generate a one time free cash flow of $24,200,000 in one year's time. The company has a debt/equity ratio of 3.0. The company's unlevered cost of equity is 8.9%. There are no taxes and no other imperfections. What is the value of the debt today? Your answer should be accurate to two decimal places. Answer: x (16,666,666.67) Question 6 0 / 1 point ABC Inc. will generate a one time free cash flow of $32,850,000 in one year's time. The company has a debt/equity ratio of 2.0. The company's unlevered cost of equity is 10.0%. There are no taxes and no other imperfections. What is the value of the equity today? Your answer should be accurate to two decimal places. Answer: x (9,954,545.45)Step by Step Solution
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