A retail coffee company is planning to open 100 new coffee outlets that are expected to generate

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A retail coffee company is planning to open 100 new coffee outlets that are expected to generate $15 million in free cash flows per year, with a growth rate of 3% in perpetuity. If the coffee company’s WACC is 10%, what is the NPV of this expansion?

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Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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