A retail coffee company is planning to open 110 new coffee outlets that are expected to generate $15.9 million in free cash flows per year, with a growth rate of 2.8% in perpetuity. If the coffee company's WACC is 9.5%, what is the NPV of this expansion? The present value of the free cash flows is $ million. (Round to two decimal places.)

A retail coffee company is planning to open 110 new coffee outlets that are expected to generate $15.9 million in free cash flows per year, with a growth rate of 2.8% in perpetuity. If the coffee company's WACC is 9.5%, what is the NPV of this expansion? The present value of the free cash flows is $ million. (Round to two decimal places.)

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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