Question: TABLE 31.1 SPREADSHEET pected Foreign Free Call Flows from its UK Projet 0 0 0 0 Dome Assume that in the originallyesi example in Table


TABLE 31.1 SPREADSHEET pected Foreign Free Call Flows from its UK Projet 0 0 0 0 Dome Assume that in the originallyesi example in Table all sales actually occur in the United States and are projected to be 561 Year Forward Exchange Rate (S/E) 16987 1.5195 1 .4713 1.3463 1.5706 Calcualte the cash flows below. (Round to three decimal places. Forward exchange rates must Data Table Year Free cash flow (millions of pounds) Forward exchange rate Free cash flow (millons of dollars) Sales in the US (millons of dollars) TABLE 31.1 SPREADSHEET Cash flow (millons of dollars) The NPV is 5 million (Round to three decimal places.) Incremental Earnir 1 Sales 2 Cost of Goods 3 Gross Profit 4 Operating Expo 5 Depreciation 6 EBIT 7 Income tax at 4 8 Unlevered Net Free Cash Flow 9 Plus: Depreciatic 10 Less: Capital Ex 11 Loss: Increases 12 Pound Free Cas Enter any number in the edit fields and then continue to the next question Save for Later O Type here to search projected to be 5613 million per year for four years Keeping the cost the same, calculate the NPV of the inventory Assume the VACCIO Expected Foreign Free Cash Flows from Ityesi's U.K. Project TABLE 31.1 SPREADSHEET millions Incremental Earnings Forecast 1 Sales .167 2 Cost of Goods Sold Gross Profit Operating Expenses 5 Depreciation EBIT income taxat 40% Unlevered Net Income Free Cash Flow Plus Depreciation Les Capital Expenditures 11 Loss Increases in NWC 12 Pound Free Cash Flow 167 1857 500 37500 3750 37500 37500 SS15215625 115.685 21875 2175 2175 2107 5.625 5.625 5.625 5.625 3.750 3750 375017509 12500 12500 12.500 2.500 5000 5000 5000 5000 700 70.00 000 7500 7500 3.750 3750 3.750 115.000 1250 11.250 (17500 11250 Assume that in the original Ilyesi example in Table , al sales actually occur in the United States and are projected to be $61.3 million per year for four years. Year Forward Exchange Rate (S/E) 1.6987 1.5195 14713 3463 1.5706 Calcuate the cash flows below. (Round to three decimal places. Forward exchange rates must * Data Table Year Free cash flow (millions of pounds) Forward exchange rate Free cash flow (millons of dollars) Sales in the US (millons of dollars) Cash flow (millons of dollars) The NPV is $ million (Round to three decimal places) TABLE 31.1 Expected Foreign SPREADSHEET Year Incremental Earnings Forecast ( millions) 1 Sales 2 Cost of Goods Sold 3 Gross Profit 4 Operating Expensos 5 Depreciation 6 EBIT 7 Income tax at 40% 8 Unlevered Net Income Free Cash Flow 9 Plus: Depreciation 10 Less: Capital Expenditures 11 Less: Increases in NWC 12 Pound Free Cash Flow d States and are projected to be 5613 million per year for four years Keeping other costs the same, calculate the NPV of the investment opportunity Assume the WACC 66% The forward exchange rates are given below TABLE 31.1 Expected Foreign Free Cash Flows from Ityesi's U.K. Project SPREADSHEET Year Incremental Earnings Forecast 1 millions Salos 37500 37500 3500 32500 2 Cost of Goods Sold (15.625) (15.625 615 625) (15.6251 3 Gross Profit 21875 21875 21875 21875 Operating Expenses 14 107) 15.6251 5.625) 15.625 5.625 5 Depreciation 32.750 3.750 3.750 0.7500 EBIT 167 12.00 12.500 12500 12.500 7 income tax at 80% 1037 5 000 15000 15000 150000 Unlevered Net Income 12.500 7500 7500 2500 2500 Free Cash Flow 9 Dorocation 3.750 3.750 3.750 3.750 10 Loss Capital Expondturos (16.000 11 Increase in NWC 12 Pound Free Cash Flow 1125001 11.250 11.250 11.250 11.250
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