2. Sisyphus Corp. has projected that their performance for the next five years result to the following: Cash Operating Expenses 30 33.00 36.30 39.93 43.92 ΥEAR Revenue 50 55.00 60.50 66.55 73.21 1 2 3 4. 5 Terminal value was assumed based on the growth rate of the cash flows. Annual Capital investment requirement is at P2 million. Income Tax rate is at 30%. The required rate or return for their business is 14%. Requirement: a. Compute for the growth rate b. How much is the Terminal Value? c. How much is the Free Cash Flow for years 1-5? d. How much is the Discounted Net Cash Flows to the Firm for years 1-5?
2. Sisyphus Corp. has projected that their performance for the next five years result to the following: Cash Operating Expenses 30 33.00 36.30 39.93 43.92 ΥEAR Revenue 50 55.00 60.50 66.55 73.21 1 2 3 4. 5 Terminal value was assumed based on the growth rate of the cash flows. Annual Capital investment requirement is at P2 million. Income Tax rate is at 30%. The required rate or return for their business is 14%. Requirement: a. Compute for the growth rate b. How much is the Terminal Value? c. How much is the Free Cash Flow for years 1-5? d. How much is the Discounted Net Cash Flows to the Firm for years 1-5?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Answer it precisely and clear format
Transcribed Image Text:2. Sisyphus Corp. has projected that their performance for the next five years result to the
following:
YEAR
Revenue
Cash Operating Expenses
1
50
30
33.00
55.00
3
60.50
36.30
4.
66.55
39.93
5
73.21
43.92
Terminal value was assumed based on the growth rate of the cash flows. Annual Capital
investment requirement is at P2 million. Income Tax rate is at 30%. The required rate or
return for their business is 14%.
Requirement:
a. Compute for the growth rate
b. How much is the Terminal Value?
c. How much is the Free Cash Flow for years 1-5?
d. How much is the Discounted Net Cash Flows to the Firm for years 1-5?
Transcribed Image Text:Essay
1. What is the purpose of sustainability accounting and disclosure?
2. Why are SASB standards needed in the business world?
3. Suppose you are tasked to construct and evaluate complex financial statements,
including those relating to group accounts, to show an organization's financial
position and performance. How do SASB standards relate to your task?
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