Question
what is the free cash flow and NPV of the plant to manufacture lightweight trucks? What is the IRR of the this project? Eastern Auto
what is the free cash flow and NPV of the plant to manufacture lightweight trucks? What is the IRR of the this project?
Eastern Auto parts Co. Ltd., uses the CAPM model to calculate the discount rate for its capital budgeting. The returns on the company's stock and the SET Index are provided for the cost of capital calculation.
The Two-year goverment bond has a coupon rate of 10 percent, which is paid every six months. The bond is traded at 965.38 baht. The market risk premium in the thai stock market is 8 percent. What is the discount rate of the company? Please calculate the NPV and IRR. Will the company proceed with the investment?
Year Cash Flows -50000 35000 35000 35000 SET Index Stock Price 3% -4.5% June 1 June 2 June 3 June 4 June 5 2% -3% -5% 0.5% -2 0.75% -3%
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