Question
Year 1 Year 2 Revenues 120.8 150.6 COGS and Operating Expenses (other than depreciation) 46.1 54.5 Depreciation 24.9 32.9 Increase in Net Working Capital 2.8
|
| Year 1 | Year 2 | |
| Revenues | 120.8 | 150.6 | |
| COGS and Operating Expenses (other than depreciation) | 46.1 | 54.5 | |
| Depreciation | 24.9 | 32.9 | |
| Increase in Net Working Capital | 2.8 | 8.2 | |
| Capital Expenditures | 29.2 | 38.4 | |
| Marginal Corporate Tax Rate | 35% | 35% |
a. What are the incremental earnings for this project for years 1 and 2? (Note: Assume any incremental cost of goods sold is included as part of operating expenses.)
b. What are the free cash flows for this project for years 1 and 2?
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Finance And Financial Markets
Authors: Keith Pilbeam
2nd Edition
1403948356, 978-1403948359
