From Part A above, assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for the initial year). Nivea-Corporation invested the amount in a project and generated the following sequence of cash flows over six years:   Year   Cash Flow ($ million)   0 -59 1 4 2 5 3 6 4 7.33 5 8 6 8.25 Calculate the Net Present Value (NPV) and the Profitability Index (PI) over the six years. Assume discount rate 17% This project does not end after the sixth year but instead will generate cash flows far into the future. Estimate the project’s terminal value, assuming that cash flows after year 6 continue at $8.25 per year perpetuity and then recalculate the investment’s NPV. Calculate the terminal value assuming that cash flows after the sixth year grow at 2% annually in perpetuity, and then recalculate the NPV.

The following is a five-year discounted cash flow (DCF) forecast for Middlestates Electric, Inc., an electric utility company [Use spreadsheet Workbook Chapter 9 Problem 8]: ($ MM) Year 1 Year 2 Year 3 Year 4 Year 5 Operating income 2,039 2,325 2,169 2,430 2,615 Taxes 712 813 777 870 937 Depreciation and amortization 1,299 1,413 1,470 1,527 1,584 Change in working capital (169) 294 (223) 163 (205) Capital expenditures/asset sales (1,754) (3,432) 1,180 (2,720) (2,133) Free cash flow 703 (213) 3,819 530 924 Cash flows over the next five years are expected to fluctuate significantly due to key acquisitions and restructuring measures planned by Middlestates. After the fifth year, however, cash flow is expected to stabilize. Economists expect the long-term inflation rate to stabilize at 2.0 percent, and Middlestates expects real growth in sales to be 2.0 percent or less. Management has…

Given the following data for Year-1: (EBIT-taxes)=$5 million; Depreciation=$2 million; Capital expenditures=$4 million; Working capital expenditures=$1 million. Calculate the free cash flow (FCF) for Year-1: a. $11 million O b. $2 million C. $3 million O d. $7 million.

From Part A above, assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for initial year). Nivea-Corporation invested the amount in a project and generated the following sequence of cash flows over six years:   Year   Cash Flow ($ million)   0 -59 1 4 2 5 3 6 4 7.33 5 8 6 8.25 Calculate the Net Present Value (NPV) and the Profitability Index (PI) over the six years. Assume interesr rate is 13% This project does not end after the sixth year but instead will generate cash flows far into the future. Estimate the project’s terminal value, assuming that cash flows after year 6 continue at $8.25 per year perpetuity and then recalculate the investment’s NPV. Calculate the terminal value assuming that cash flows after the sixth year grow at 2% annually in perpetuity, and then recalculate the NPV.

JoyFM Inc. has an investment opportunity, which generates cash flows shown below. The investment opportunity gives an IRR of Year Cash Flow 0 - $14,500 1 2 3 4 7,400 8,700 2,500 2,100 21.63% 22.49% 23.07% 20.76% 24.22%

If cash flow from operating activities is 700,000, tax rate is 30%, and capital expenditure is 80,000, what is free cash flow?

Hello. I need help with the following question.    The estimation of cash flows Consider the case of Beak’s Birdhouse Builders Inc. (B3): Beak’s Birdhouse Builders Inc. (B3) currently earns annual revenues of $1,500,000 and incurs total operating expenses (excluding depreciation and interest expense) of 45% of revenues. Its earnings are taxed at a rate of 40%. Today, its budgeting committee is evaluating the purchase of a new computerized table saw. The table saw is expected to cost $15,000, plus $3,500 in freight and setup expenses, and will be depreciated using straight-line depreciation. It is expected that the table saw will have a useful life of ten years and a salvage value equal to 25% of its purchase price. It is further expected that the table saw will increase the firm’s productivity and cause a 25.00% increase in the firm’s annual sales and total operating expenses (excluding depreciation and interest expense). If the table saw is purchased, the firm will require an…

Calculate Computron’s free cash flow. Identify what you think are Computron’s “net Uses” of its FCF. Hint: FCF = NOPAT - Net investment in capital from previous to current year. Computron's Balance Sheets (Millions of Dollars)       2019 2020 Assets     Cash and equivalents $ 60 $ 50 Short-term investments 100 10 Accounts receivable 400 520 Inventories 620 820 Total current assets $ 1,180 $ 1,400 Gross fixed assets $ 3,900 $ 4,820 Less: Accumulated depreciation 1,000 1,320 Net fixed assets $ 2,900 $ 3,500 Total assets $ 4,080 $ 4,900       Liabilities and equity     Accounts payable $ 300 $ 400 Notes payable 50 250 Accruals 200 240 Total current liabilities $ 550 $ 890 Long-term bonds 800 1,100 Total liabilities $ 1,350 $ 1,990 Common stock 1,000 1,000 Retained earnings 1,730 1,910 Total equity $ 2,730 $ 2,910 Total liabilities and equity $ 4,080 $ 4,900             Computron's Income Statement (Millions of Dollars) 2019 2020…

Help asap please! DGE purchased a cement truck for $120,000. It is expected to last N=4 years. The $120,000 was borrowed from the bank at 10% interest per year compounded annually and payments are paid annually from DGE to the bank. The loan will be fully repaid in 4 years. CCA rate is 35%. Tax Rate is 40%. Answer the following questions with regards to Income Statements and Cash Flow Statements. Develop the cash flow/ investment including as many details as possible. What is the net cash flow over 6 years, A. If there were working capital (WC) required for this project, which year or years does it show up in the statement(s)?