What is the project npv in millions of dollars

Assignment Help Finance Basics
Reference no: EM132703551

You are considering a new project. The initial cost is $165 million. You expect free cash flow (FCFF) of $5million the 1st year, and that this free cash flow will grow by 11.5% over the following 10 years (i.e., g=11.5% for t=2 through t=11). After that, free cash flow is expected to grow at a constant rate of 5.7% forever. Assume a WACC equal to 10%. What is the project's NPV "in millions of dollars"? Answer should include four digits to the right of the decimal point.

Reference no: EM132703551

Questions Cloud

Describe Benito Mussolini revival of European Imperialism : Describe Benito Mussolini's revival of European Imperialism in North Africa and how he came to be Adolf Hitler's ally
Calculate the mirr of the project : Calculate the MIRR of the following project. Answer should include four digits to the right of the decimal point.
What is the wacc for the project : Assume your calculated re for the project is 9.8%. The CFO also tells you that company's rd equals 3.7%. Remembering that the project is financed
What major industry does the company operate in : What major industry does this company operate in? What are two risks identified by management? Please describe these risks.
What is the project npv in millions of dollars : What is the project's NPV "in millions of dollars"? Answer should include four digits to the right of the decimal point.
Find the wacc for the firm : The preferred is selling on the market for $30 per share . Atlas must pay a flotation cost of 4% of the market price. Find the WACC for the firm
What is the fiscal year for which the report was filed : What is the fiscal year for which this report was filed? You need to include the month and the year. Does this company's fiscal year-end
What percentage of the gain in the index can it offer : Suppose a firm offers an equity-linked security. The face value is $1 million and its payoff is based on any appreciation in an equity index currently
What strategies for socialization would you implement : What strategies for socialization would you implement to increase the probability of new recruits joining the CVPD? What problems would you anticipate with.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd