The Brookfield Corporation is considering a four-year project with the following data; What is the project...

The Brookfield Corporation is considering a four-year project with the following data; What is the project NPV using wacc of 11.3%?

Additional investment in fixed assets but no additional working capital $100,000

Straight-line depreciation rate 25% but zero salvage value after four years

Annual sales revenues (constant for every year) $75,000

Operating costs (excl. depreciation) (also constant) $25,000

Tax rate 21.0%

Trumbull Inc. has $4.8 million EBIT, $1.2 million depreciation, a tax rate of .4, a capital expenditure of $0.7 million, and an increase in NOWC of $1.1 million. To the nearest 0.1 million, what is its free cash flow?

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Formulae as above....

jeff jeffy answered 1 year ago

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