Question
You are considering manufacturing a new Web browser. Startup costs are $18 million and you expect to produce FCFF of $1.15 million the first year
You are considering manufacturing a new Web browser. Startup costs are $18 million and you expect to produce FCFF of $1.15 million the first year (t=1) and FCFF that grows at a constant rate of 15% for the next 7 years (t=2-8). After that, the FCFF is expected to grow at a constant 7% forever. What is the NPV of the project if the project cost of capital is 19%?
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Financial Management Principles And Applications
Authors: Arthur J. Keown
9th Edition
013033362X, 9780130333629
