Question: Question 3 please Caleulate t 2. Given are the following data for year 1: Profits after taxes- $20 million; Depreciation $6 $12 million; Investment in
Caleulate t 2. Given are the following data for year 1: Profits after taxes- $20 million; Depreciation $6 $12 million; Investment in Interest expense = $4 million; Investment in fixed assets million. The corporate tax rate is 25 percent. million; Calculate the free cash flow (FCF) for year 1 3. Consider the following data: FCF, $7 million; FCF2 $45 million; FCFs $55 million. Assume that free cash flow grows at a rate of 4 percent for year 4 and beyond. f the weighted average cost of capital is 10 percent, calculate the value of the firm. 4. A project costs $15 million and is expected to produce cash flows of $3 million a year years. The opportunity cost of capital is 14 percent. he firm has to issue stock to undertake the project and issue costs are $500,000, what ject's APV
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