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You are in a Board Meeting with Ed Harding, Part-Time CFO of Next Day Dumpsters A Dumpster can generate $15k of Revenue per year,
You are in a Board Meeting with Ed Harding, Part-Time CFO of Next Day Dumpsters A Dumpster can generate $15k of Revenue per year, at an After-Tax Operating Margin of 9.0%. The WACC for an investment in a Dumpster has been determined to be 15%. It is 2021 and management is concerned with the price of Dumpsters due to the rising cost of steel. Harding explained to Management and the Investment Bankers how to determine the maximum Price you'd be willing to pay for a Dumpster, assuming a useful life of 13 years. What is it?
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
