F Question Viewer Cost of Goods Sold - Depreciation = EBIT - Taxes (20%) = Unlevered net income + Depreciation - Additions to Net Working Capital - Capital Expenditures = Free Cash Flow O A. 17% OB. 30% OC. 25% O D. 22% Year O 0000 Year 1 424897.541 - 165000 Year 2 424897.541 - 165000 _-85000_ _-85000__ __-85000___ 174897.541 174897.541 174897.541 -34979.508 139918.033 _-400000__ -34979.508_-34979.508 139918.033 85000 - 20000 139918.033 85000 - 20000 Year 3 424897.541 - 165000 204918.033 204918.033 204918.033 Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. By how much could the discount rate rise before the net present value (NPV) of this project is zero, given that it is currently 8%? 85000 - 20000
F Question Viewer Cost of Goods Sold - Depreciation = EBIT - Taxes (20%) = Unlevered net income + Depreciation - Additions to Net Working Capital - Capital Expenditures = Free Cash Flow O A. 17% OB. 30% OC. 25% O D. 22% Year O 0000 Year 1 424897.541 - 165000 Year 2 424897.541 - 165000 _-85000_ _-85000__ __-85000___ 174897.541 174897.541 174897.541 -34979.508 139918.033 _-400000__ -34979.508_-34979.508 139918.033 85000 - 20000 139918.033 85000 - 20000 Year 3 424897.541 - 165000 204918.033 204918.033 204918.033 Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. By how much could the discount rate rise before the net present value (NPV) of this project is zero, given that it is currently 8%? 85000 - 20000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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