DUEL d all Executive Assistent (EA) to the CFO ABC Lid of of analysing the value of renovation project for Plant A. The are provided belew flent manager. The corporate tor hate is 25% presented to All values are fire casts. the EA by in INR million. 6 1 1. Initial Investment 700 - 2. Year Project equity the Revenues 3. Variable Cest 4. Depreciation 5. Fixed costs 6. Interest expense. 7. Net proceeds in debt - 140 8. Principal on which debt is prepard 9. Change in operating networking capital. the holders should renovation. why ar There are 2 3 90. 95 100 140 140 14 14 20 350 360 370 380 300 why not no 2.0 70 290 free cash flow to years. equity capital is 14% what is the 14 20 140 140 14 30 4 5-. 105 60 preferred equity 18 140 14 18 the with the above data for 0 to year 5. If the cast of the value renovation project for plant 4 9 they they go ahead with the 110 -360 holders.