Question: Assume that in the original Ityesi example in Table 23.2, all sales actually occur in the United States and are projected to be $60 million

Assume that in the original Ityesi example in Table 23.2, all sales actually occur in the United States and are projected to be $60 million per year for four years. Keeping other costs the same, calculate the NPV of the investmentopportunity.

Year Incremental Earnings Forecast (C million) Sales Cost of Goods Sold Gross Profit Operating Expenses Depreciation EBIT Incarne Tax at 4090 Unlevered Net Income Free Cash Flow Plus: Depreciation Less: Capital Expenditures Less: Increases in NWC Pound Free Cash Flow 37.500 37.500 37.500 37.500 -|-15.625 |-15.625 |-15.625 |-15.625 21.875 21.875 21.875 21.875 -4.167 | 5.625 | 5.6255.625 | 5.625 3.7503.7503.7503.750 -4.167 12.500 12.500 12.500 12.500 1.667| -5.000| -5.000| -5.000| -5.000 2.500 7.5007.5007.500 7.500 3.750 3.750 3.750 3.750 -15.000 -17.500 11.250 11.250 11.250 11.250

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