Question: for the question 2, Please use formula method do this question Thus, CFFA =OCF-NCS-ANWC = 49. - leyterm debt CFB = interest paid -net new

for the question 2, Please use formula method do this question

for the question 2, Please use formula method do this question Thus,

Thus, CFFA =OCF-NCS-ANWC = 49. - leyterm debt CFB = interest paid -net new borrowing = $70 - $46 = $24. EBIT CFS = dividend paid - net new equity raised = $65-$40 =25. Hence, CFFA=CFB+CFS. - Tax 2. Dartmoor Inc. is investigating the feasibility of a new line of power mulching tools. Dartmoor comes up with the following forecast on sales: H Co Unit Sales 3,000 5,000 6,000 6,500 Unit Price 120 120 120 110 The variable cost per unit is $60, and the fixed cost is $25,000 per year. The project requires $20,000 in NWC at the start and subsequently total NWC at the end of each would be about 15% pf sales for the year. The cost to buy the equipment to begin production is $800,00), which falls in Class 8 with a CCA rate of 20%. The equipment will be worth $360,000 in 4 years. The company's tax rate is 40%. If the required return (the Weighted average cost of capital) is 15%, should Dartmoor Inc. go forward with the project? Answer: Omitted. You should make sure that you know how solve this typical capital bud- geting problem in its simplest form. 3. Consider an all-equity company operating in the following three different economies: for Normal -60%, and Expansion -25%, with an EBIT of -$200, $500

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