project cash flow to the equity holders with abive data from year 0 to year 5. cost of equity is 15%. what is calue to renivation prpject for plant A no preferred euity holder

Question No: 04 The fored The Executive Assistant (EA) to the CFO of ABC Ltd. was given the task of analyzing the value of a renovation project for Plant provided below was presented to the EA by the plant manager. All values are in INR million. The corporate tax rate is 25% Year 0 1 2 3 4 5 1. Initial Investment (CAPEX) 500 2 Revenues 300 325 350 350 250 3 Variable costs 75 81.25 875 875 625 4. Depreciation 100 100 100 100 100 5. Fixed costs 10 10 10 10 10 6. Interest expense 15 15 15 12 12 7. Net proceeds to debt 100 8. Principal on debt which is repaid 20 80 Oinar Material ch CA Question No: 04 The fored The Executive Assistant (EA) to the CFO of ABC Ltd. was given the task of analyzing the value of a renovation project for Plant provided below was presented to the EA by the plant manager. All values are in INR million. The corporate tax rate is 25% Year 0 1 2 3 4 5 1. Initial Investment (CAPEX) 500 2 Revenues 300 325 350 350 250 3 Variable costs 75 81.25 875 875 625 4. Depreciation 100 100 100 100 100 5. Fixed costs 10 10 10 10 10 6. Interest expense 15 15 15 12 12 7. Net proceeds to debt 100 8. Principal on debt which is repaid 20 80 Oinar Material ch CA