Question: Hi! I need help with these 2 problems from a Coursera's course. I think more or less how to do it but maybe because I

Hi! I need help with these 2 problems from a Coursera's course. I think more or less how to do it but maybe because I need a really accurate answer with the coursera standard I can't obtain it.

Thanks so much!

Problem 2. ChemTech - Free Cash Flow 1

Continuing from Problem 1, at the end of the first year, Chemtec is expecting sales of

$250million and costs of$125million. There are no more required investments in either net working capital or plant and equipment. However, the existing plant and equipment will experience$50million of depreciation.

Assume that Chemtec's marginal tax rate on earnings is

35%.

Assuming that all of these cash flow occur at the end of the first year, what is the first year's free cash flow?

*Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

3.

Problem 3. Jones - NPV

Jones Corp is evaluating a project that has the following annual free cash flows:

Period 0 1 2

Free Cash Flow 150 100 150

If the project's discount rate is 12%, then what is the NPV of the project?

*Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!