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prepared the incremental free cash flow projections shown in the following table ( in millions of dollars ) : a . For this base -

prepared the incremental free cash flow projections shown in the following table (in millions of dollars):
a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks?
than forecast? What is the NPV if revenues are 8% lower than forecast?
For what ranges of discount rates does the project have a positive NPV?
a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks?
The NPV of the plant to manufacture lightweight trucks, based on the estimated free cash flow is $ million. (Round to one decimal place.)
than forecast? What is the NPV if revenues are 8% lower than forecast?
The NPVof this project if revenues are 8% higher than forecast is $ million. (Round to one decimal place.)
The NPV of this project if revenues are 8% lower than forecast is $ million. (Round to one decimal place.)
d. To examine the sensitivity of this project to the discount rate, management would like to compute the NPV fo
rates ranging from 5% to 30%. For what ranges of discount rates does the project have a positive NPV?
The NPV is positive for discount rates below the IRR of %.(Round to two decimal places.)
Data table
the y-axis, for discount
(Click on the following icon in order to copy its contents into a spreadsheet.)
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