A company is considering investing in a new production facility that will generate incremental Free Cash Flows
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Question:
A company is considering investing in a new production facility that will generate incremental Free Cash Flows in year 1 of $14 which will grow at 2.5% per year after that.
If the company's WACC is 11.1% and the cost of the investment is $57, what is the NPV of the investment?
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
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