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Suppose you invested a total of $562,000 in working capital into a project over 6 years. Then, in year 6 , you wind down the
Suppose you invested a total of $562,000 in working capital into a project over 6 years. Then, in year 6 , you wind down the project and sell off all the working capital that sustained the project. What is the free cash flow in year 6 from the change in working capital? $93,667$562,000$0$562,000 A firm has debt valued at $7.6 million, and $1.3 million in excess cash. The equity holders will receive dividends of $0.5 million next year, and this amount will grow by 4% in perpetuity. If the discount rate for the equity is 23%, what is the enterprise value of the firm? \$11.5M $8.9M $10.2M $3.9M Assume the book value of an ocean liner is $263 and the tax rate is 34%. Also assume that the firm has lots of profits from other parts of its business. If the ocean liner is sold for $313, what is the free cash flow from the sale? $0 $50 $296 $330
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