Question: PLEASE ANSWER IF CONFIDENT. need help Answer this whole question/parts clearly. Please ensure that your answers are explained & correct. Thank you You are a

PLEASE ANSWER IF CONFIDENT. need help

Answer this whole question/parts clearly. Please

ensure that your answers are explained &

correct. Thank you

 PLEASE ANSWER IF CONFIDENT. need help Answer this whole question/parts clearly.

You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fbre manufacturing. Your boss comes into your office, drops a consultanf's report on your desk. and complains, "We owe these consultants $1.1 milion for this report, and I am not sure their analysis makes sense. Before we spend the $18 milion on new equipment needed for this project, look. it over and give me your opinion." You open the report and find the following estimates (in millons of dollars); All of the estimates in the report seem correct: You note that the consultants used straight-line depreciation for the new equipment that will be purchased today (year o), which is what the accounting department recommended for financial reporting purposes. CPA allows a CCA rate of 30% on the equipment for tax purposes. The report concludes that beceuse the profect will increase earnings by $6.214 million per year for 10 years, the project is worth $62,14 million. You think back to your glory days in finance class and realize there is more work to be donel First you note that the consultants have not factored in the fact that the project will require $9 million in working capital up front (year 0 ), which will be fully recovered in year 10 . Next you see they have attributed $1.44 milion of selling. general and administrative expenses to the project, but you know that $0.72 million of this amount is overhead that will be incurred even if the project is not actepted. Finally, you know that accounting earmings are not the right thing to focus onl a. Given the avalable information, what are the free cash flows in years 0 through 10 that should be used to evaluate the proposed project? a. Given the avalabile information, what are the free cash flows in years 0 through 10 that should be used to evaluate the proposed project? The free cash flow for year 0 is : million. (Round to three decimal places, and enter a decrease as a negasive number.)

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