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Other Fields Homework Help Finance Topic started by: Dymondmonae on Jul 7, 2019



Title: A firm is considering investing in a new project with an upfront cost of $400 million. The project ...
Post by: Dymondmonae on Jul 7, 2019
A firm is considering investing in a new project with an upfront cost of $400 million.  The project will generate an incremental free cash flow of $50 million in the first year and this cashflow is expected to grow at an annual rate of 4% forever.  If the firm's WACC is 13%, what is the value of this project?

▸ $155.6 million

▸ $577.8 million

▸ $555.6 million

▸ $177.8 million


Title: A firm is considering investing in a new project with an upfront cost of $400 million. The project ...
Post by: meigsfla on Jul 7, 2019
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Title: A firm is considering investing in a new project with an upfront cost of $400 million. The project ...
Post by: Dymondmonae on Jul 7, 2019
Good timing, thanks!