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Your event lighting company is thinking about investing in a bank of portable lights for sporting events. Your accounting department just brought you the
Your event lighting company is thinking about investing in a bank of portable lights for sporting events. Your accounting department just brought you the following pro-forma accounting projections for a given bank of lights. These are in the Excel Answer File. Your job is to analyze this project from a financial perspective. Part a: If the tax rate is 40%, what is the incremental, unlevered net income of the project appropriate for project analysis in each year? Part b: What is the incremental free cash flow of the project in each year? Part c: What is the PI of the project if the required return is 8%?
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