Question
You are given the following data: Project life : 10 years Revenues : constant at MYR 10M Costs : 20% of revenues NWC : 10%
You are given the following data:
Project life: 10 years
Revenues: constant at MYR 10M
Costs: 20% of revenues
NWC: 10% of the revenues in the following year
Upfront investment at time 0: MYR 25M, depreciated straight-line to zero, salvage MYR 10M
taxes in Malaysia: 15%
WACC in USD 10%
Spot rate MYR 4.13/USD
inflation in USA 1.5%
inflation in Malaysia 2.5%
Question(s):
- Compute the free cash flow in year 0 in MYR. If this is an outflow please enter a negative number.
- Compute the free cash flow in year 1 in MYR. If this is an outflow please enter a negative number.
- Compute the free cash flow in year 10 in MYR. If this is an outflow please enter a negative number. Don't forget the salvage value and the taxes!
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