Management of March and Dine Inc. has estimated that the firm's new TV dinner project must generate

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Management of March and Dine Inc. has estimated that the firm's new TV dinner project must generate $10,200 in FCF during each of the next six years to have an NPV of $0. Management anticipates that depreciation and amortization charges will equal $3,000, capital expenditures will equal $2,000, and additions to working capital will equal $500 during each of those years. What level of EBIT corresponds to an annual FCF of $10,200 if the firm is subject to the 30 percent marginal tax rate?
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Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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