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the answers as per the key are following and it doesnt match Question 2 ( Capital budgeting ) a ) ( Unlevered ) net income:
the answers as per the key are following and it doesnt match
Question Capital budgeting
aUnlevered net income: NI NI NI NI;
Free cash ows: CF CF CF CF
b The expected return on GAP is
c The NPV of the project is We should undertake it
d Unlevered income is now and free cash ow in years and Free cash ow in
year is instead of The new NPV is We would still undertake the project.
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