Question: Hide Assignment Information please provide excel with explanation Company ABC is looking at doing the below project. which is expected to have the below first
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| please provide excel with explanation | |
| Company ABC is looking at doing the below project. which is expected to have the below first year financials, Net working capital is paid at time zero. Revenue: $58 million EBITDA: $14 million Depreciation & Amortization: $2.5 million CapEx: $2 million Net Working Capital: $7 million Tax Rate: 30% It is expected that over 10 years the EBITDA margin will increase by 0.4% a year while depreciation, CapEx and Net working capital will remain a constant % of sales. Revenue will grow by 3% a year. After 10 years of business the project will be finished and Net Working Capital returned. If your required rate of return is 11% at what initial cost would you accept the project? Provide a spreadsheet to support your calculations and provide a short explanation of your decision and findings in the same spreadsheet, 4-6 sentences should be sufficient. Ensure the spreadsheet allows me to adjust growth, EBITDA margin and required rate of return assumptions to see the updated NPV and IRR. | |
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