A company is deciding whether to expand its production facilities Management has projected the following information over the next two years Year 1 Year 2 Revenues 125 160 COGS 40 60 Depreciation 25 36 Increase in NWC 5 8 Capital Expenditures 30 40 Tax rate 35 35 What is the net income and free cas...

To calculate the net income and free cash flows for both years we first need to determine ...

A company is deciding whether to expand its production facilities. Management has projected the following information over

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A company is deciding whether to expand its production facilities. Management has projected the following information over the next two years

	Year 1	Year 2
Revenues	125	160
COGS	40	60
Depreciation	25	36
Increase in NWC	5	8
Capital Expenditures	30	40
Tax rate	35%	35%

What is the net income and free cash flows for both years?

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Corporate Finance

ISBN: 978-0133097894

3rd edition

Authors: Jonathan Berk and Peter DeMarzo

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Posted Date: Mar 07, 2024 11:22 PM

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A company is deciding whether to expand its production facilities. Management has projected the following information over

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