Question 3.2 You are considering investing in the following project: Initial investment Functional expenses Revenues Balance of prepaid expenses Balance of accounts payables Tax rate Operating expenses Balance of inventory Depreciation Balance of accrued expenses Replacement investments Balance of accounts receivables Please calculate the following values for YEAR 2. Change in Working Capital Requirement EBIT Net EBIT Free Cash Flow Year 0 65,408 Year 2 Year 1 4,482 24,477 192 978 21% 15,910 715 1,897 566 1,284 Year 2 5,217 34,076 251 1,556 21% 22,150 797 1,910 619 396 1,787 495 whole number, no decimals 297 whole number, no decimals 237 whole number, no decimals whole number, no decimals

Question 3.2 You are considering investing in the following project: Initial investment Functional expenses Revenues Balance of prepaid expenses Balance of accounts payables Tax rate Operating expenses Balance of inventory Depreciation Balance of accrued expenses Replacement investments Balance of accounts receivables Please calculate the following values for YEAR 2. Change in Working Capital Requirement EBIT Net EBIT Free Cash Flow Year 0 65,408 Year 2 Year 1 4,482 24,477 192 978 21% 15,910 715 1,897 566 1,284 Year 2 5,217 34,076 251 1,556 21% 22,150 797 1,910 619 396 1,787 495 whole number, no decimals 297 whole number, no decimals 237 whole number, no decimals whole number, no decimals

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter12: Valuation: Cash-flow Based Approaches

Section: Chapter Questions

Problem 1IIC

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