retail coffee company is planning to open 105 new coffee outlets that are expected to generate $15.7 million in free cash flows per year, with a growth rate of 2.9% in perpetuity. If the coffee company's WACC is 9.5%, what is the NPV of this expansion? The present value of the free cash flows is $_____ million. (Round to two decimal places.
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- A retail coffee company is planning to open 95 new coffee outlets that are expected to generate $15.5 million in free cash flows per year, with a growth rate of 3.2% in perpetuity. If the coffee company's WACC is 10.7%, what is the NPV of this expansion? The present value of the free cash flows is $ __ million ? (Round to two decimal places.)A retail coffee company is planning to open 105 new coffee outlets that are expected to generate $13.6million in free cash flows per year, with a growth rate of 2.8% in perpetuity. If the coffee company's WACC is 10.1%,what is the NPV of this expansion?Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial Investment of $225,000. It is expected to generate $30,000 of annual cash flows, provide incremental cash revenues of $174,350, and Incur Incremental cash expenses of $110,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. Payback period ARR years
- Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $268,000. It is expected to generate $40,000 of annual cash flows, provide incremental cash revenues of $194,772, and incur incremental cash expenses of $120,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. Payback period years. ARR %Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $204,000. It is expected to generate $30,000 of annual cash flows, provide incremental cash revenues of $125,080, and incur incremental cash expenses of $70,000 annually. What is the payback period and accounting rate of return (ARR)? Round your answers to 1 decimal place. Payback period fill in the blank 1 years ARR fill in the blank 2%A dry cleaning store is expected to make annual cash flows forever. The cost of capital for the store is 14.33 percent. The next annual cash flow is expected in one year from today and all subsequent cash flows are expected to grow annually by 3.35 percent. What is the value of the dry cleaning store if the cash flow in 5 years from today is expected to be $243,000.00? O $1,486,339.98 (plus or minus 10 dollars) O $1,939,822.58 (plus or minus 10 dollars) O $1,132,929.58 (plus or minus 10 dollars) O $2,213,114.75 (plus or minus 10 dollars) O $1,695,743.20 (plus or minus 10 dollars)
- Golf Ball Inc. expects earnings to be $10,000 per year in perpetuity if it pays out all of its earnings in dividends. Suppose the firm has an opportunity to invest $1,000 of next year's earnings to upgrade its machinery. It is expected that this upgrade will increase earnings in all future years (starting two years from now) by $140. Assume that Golf Ball's next dividend is one year from now. The required rate of return is 12%. What is the value of Golf Ball Inc. if it undertakes the upgrade?Your firm is evaluating a project that should generate revenue of P4,600 in year one, P5,200 in year two, P5,900 in year three, and P5,700 in year four. The firm receives each cash flow at the end of each year. If your firm's required return is 12%, compounding semi-annually, what is the future value of these cash flows at the end of year four?How much will be the equivalent worth of ₱2M invested today for three years at a commercialrate of 10% compounded quarterly? 1. A manufacturer of toilet flush valves wants to have ₱15,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each quarter from now, how much will it have to deposit each year if money is worth 7% compounded quarterly in order to have it available immediately at the end of 10 years?
- You have been asked to analyze the net present value of building a bridge in Asia. You estimate that building the bridge will cost you $50 million up front and that it will generate $4 million in cash flows next year via toll collection and that these cash flows will grow 10% a year for the following four years (Years 2-5). After year 5, you expect the cash flows to continue to grow at the inflation rate (2%). Assuming a cost of capital of 8%, what is the NPV of this project to you? Would you recommend taking on this project and why?Jack Sprat Inc. wants to know if they invest 11,548 in new exercise equipment, plus $2.000 for installation. how long before they will receive their initial invest back from future cash flows? What is the payback period for the initial costs? Projected Cash flows Year 1: 5,000 Year 2: 7,000 Year 3: 4,000 Year 4: 1,000 Post your answer as number of years with 2 decimal places, for example 5.55Starwood Ltd is considering to invest in a new project. The project is expected to generate cash flows of $1,000 every four years forever with the first cash flow starting in year 2 and $4,000 every four years forever with the first cash flow starting in year 4. Suppose similar investments are paying a return of 10% p.a. compounded quarterly. How much should Starwood Ltd be prepared to pay for this project? $10,732.18 $10,235.32 $10,770.56 $11,697.21 $11,255.51