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You are a maneger at Northem Fibre, which is considering expanding its operations in synthetic fibre marufacturing. Your boss comes into your office, drops a
You are a maneger at Northem Fibre, which is considering expanding its operations in synthetic fibre marufacturing. Your boss comes into your office, drops a consultarfs repot on your desk, and over and give me your opinion. "You open the report and find the following estimates (in milions of dollars): a. Given the avalable infomation, what are the tree cash fows in years 0 through 10 that should be used to evaluate the proposed projech? The free cash flow for yoar 0 in 3 milion. (Roiand to three decimal places, and enter a decrease as a negative number.) All of the estirnales in the report seem correct. You note that the consuitants used straight-ine decreciabon for the new equipment frat wit be purchased tody bear of which is what the aconartey. \$4.040 milion pec year for 10 yoars, the project is worth 549.4 milion. You think bsck to your glory days in france class and realiee there is morn wook to be bonel accepted. Finally, you know that accounting eamings are fot the poht thing to foous ont a. Given the avaliable information, What are the free cash flows in years 0 hrough 10 that should be used so evaluale Ese proposed groiech? a. Glven the wailabie information, what ase the free cash fown in yoars o mrough 10 that should be used to evaluale the proposed protect? The free cash fow for year 0 is f milton. (Round to three decienal plsces, and enter a decrease as a negatie number.)
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