May $16,2024$ at $7$:$59$:$49$ PM $9,362$ of $9,362$

luing InMotion to all stakeholders: Buy$-$Manage$-$Sell $-$ Continued

A competing team agrees with your analysis and computations, except they believe that:

The appropriate $r_{\text{w}\text{a}\text{c}\text{c}}$ for the project is:

The annual free cash flow to all stakeholders is:

$7\mathrm{.}6677\%$

$$35\mathrm{.}75$

At the end of the project, the stock will be sold for an amount that differs from your estimate, so their estimate of $S{p}_{(D+E)}=$ Resale price of stock plus loan principal repayment $=$ $$451\mathrm{.}2500$

What is the competing team's $P{V}_{(D+E)}?$

$($IE: what is the competing team's estimate of$-$IMr's Enterprise Value?$)$

estion $26$

e competing team computes an NPV of $-20,$ does thier work suggest that they should pursue this proje best reason listed to support your answer.

Because they have not checked thier work using the IRR method.