What is the net cash flow to the firm for year two

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JOHN Company is projecting its income statement for the next 3 years using the prior year information as baseline: A) Revenue in prior year is at P1,500,000; B) Revenues are projected to grow by 5% year-on-year in line with inflation; C) Variable cost of goods sold is projected to be at 30% of revenues, D) Fixed cost of goods sold is 600,000 - including equipment depreciation of 250,000, E) Operating expense is at 20% of revenue; F) Corporate tax rate is 25%; G) Annual investment of P75,000 for working capital is anticipated to support growth; H) Weighted average cost of capital is at 10%; I) Yearly interest expense is 20,000 and J) The company's outstanding debt is 500,000.

Problem 1: What is the net cash flow to the firm for year 2?

Problem 2: What is the Company's enterprise value?

Problem 3: What is the Company's equity value?

Problem 4: What is the Company's net income at year 1?

Reference no: EM132993529

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