Consider the following projections (in millions): Year 0 Revenues Manufacturing expenses Marketing expenses Depreciation EBIT Tax...

 

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Consider the following projections (in millions): Year 0 Revenues Manufacturing expenses Marketing expenses Depreciation EBIT Tax expense (21%) Net income + Depreciation -Increase in net working capital -Capital expenditures 1. Calculate free cash flows FCF -180 3. Calculate project's IRR IRR Years 1-9 125.0 -42.0 -15.0 -19.0 49.0 -10.3 38.7 19 -5 2. If the discount rate is 7%, calculate project's NPV NPV Year 10 125.0 -42.0 -15.0 -19.0 49.0 -10.3 38.7 19 -5 Recalculate projections, free cash flows, NPV and IRR if sales decrease by 7% in comparison to the first projection: Revenues Manufacturing expenses Marketing expenses Depreciation EBIT Tax expense (21%) Net income + Depreciation -Increase in net working capital -Capital expenditures 1. Calculate free cash flows FCF Year 0 3. Calculate project's IRR IRR -180 Years 1-9 Year 10 2. If the discount rate is 7%, calculate project's NPV NPV -42.0 -15.0 -19.0 19 in to -5 -42.0 -15.0 -19.0 19 -5 Consider the following projections (in millions): Year 0 Revenues Manufacturing expenses Marketing expenses Depreciation EBIT Tax expense (21%) Net income + Depreciation -Increase in net working capital -Capital expenditures 1. Calculate free cash flows FCF -180 3. Calculate project's IRR IRR Years 1-9 125.0 -42.0 -15.0 -19.0 49.0 -10.3 38.7 19 -5 2. If the discount rate is 7%, calculate project's NPV NPV Year 10 125.0 -42.0 -15.0 -19.0 49.0 -10.3 38.7 19 -5 Recalculate projections, free cash flows, NPV and IRR if sales decrease by 7% in comparison to the first projection: Revenues Manufacturing expenses Marketing expenses Depreciation EBIT Tax expense (21%) Net income + Depreciation -Increase in net working capital -Capital expenditures 1. Calculate free cash flows FCF Year 0 3. Calculate project's IRR IRR -180 Years 1-9 Year 10 2. If the discount rate is 7%, calculate project's NPV NPV -42.0 -15.0 -19.0 19 in to -5 -42.0 -15.0 -19.0 19 -5 Consider the following projections (in millions): Year 0 Revenues Manufacturing expenses Marketing expenses Depreciation EBIT Tax expense (21%) Net income + Depreciation -Increase in net working capital -Capital expenditures 1. Calculate free cash flows FCF -180 3. Calculate project's IRR IRR Years 1-9 125.0 -42.0 -15.0 -19.0 49.0 -10.3 38.7 19 -5 2. If the discount rate is 7%, calculate project's NPV NPV Year 10 125.0 -42.0 -15.0 -19.0 49.0 -10.3 38.7 19 -5 Recalculate projections, free cash flows, NPV and IRR if sales decrease by 7% in comparison to the first projection: Revenues Manufacturing expenses Marketing expenses Depreciation EBIT Tax expense (21%) Net income + Depreciation -Increase in net working capital -Capital expenditures 1. Calculate free cash flows FCF Year 0 3. Calculate project's IRR IRR -180 Years 1-9 Year 10 2. If the discount rate is 7%, calculate project's NPV NPV -42.0 -15.0 -19.0 19 in to -5 -42.0 -15.0 -19.0 19 -5

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It looks like the image youve shared contains two financial projection tables for a project across 10 years and tasks related to these projections First we need to calculate the free cash flows net pr... View the full answer