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project. Based on extensive research, it has prepared the incremental free cash flow projections shown below (in millions of dollars): a. For this base-case scenario,
project. Based on extensive research, it has prepared the incremental free cash flow projections shown below (in millions of dollars): a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? of this project if revenues are 12% higher than forecast? What is the NPV if revenues are 12% lower than forecast? assumptions? How does the NPV change if the revenues and operating expenses grow by 6% per year rather than by 3% ? discount rates ranging from 5% to 30%. 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 $7716 million. (Round to two decimal places.) this project if revenues are 12% higher than forecast? What is the NPV if revenues are 12% lower than forecast? The NPVof this project if revenues are 12% higher than forecast is $ million. (Round to two decimal places.) ies is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to t d on extensive research, it has prepared the incremental free cash flow projections shown below (in millions of dollars): Data table (Click on the following icon in order to copy its contents into a spreadsheet.) project. Based on extensive research, it has prepared the incremental free cash flow projections shown below (in millions of dollars): a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? of this project if revenues are 12% higher than forecast? What is the NPV if revenues are 12% lower than forecast? assumptions? How does the NPV change if the revenues and operating expenses grow by 6% per year rather than by 3% ? discount rates ranging from 5% to 30%. 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 $7716 million. (Round to two decimal places.) this project if revenues are 12% higher than forecast? What is the NPV if revenues are 12% lower than forecast? The NPVof this project if revenues are 12% higher than forecast is $ million. (Round to two decimal places.) ies is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to t d on extensive research, it has prepared the incremental free cash flow projections shown below (in millions of dollars): Data table (Click on the following icon in order to copy its contents into a spreadsheet.)
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