A retail coffee company is planning to open 110 new coffee outlets that are expected to generate $14.7 million in free cash flows per year, with a growth rate of 3.1% in perpetuity. If the coffee company's WACC is 10.4%, 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 $14.7 million in free cash flows per year, with a growth rate of 3.1% in perpetuity. If the coffee company's WACC is 10.4%, 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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A retail coffee company is planning to open 95 new coffee outlets that are expected to generate $15.5 million in free cash flows per year, with a growth rate of 3.2% in perpetuity. If the coffee company's WACC is 10.7%, what is the NPV of this expansion? The present value of the free cash flows is $ __ million ? (Round to two decimal places.)
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F1 please help.....
Your have $15,000 that you want to invest. You expect your investment to yield 5% annual growth compounding annually over the long term. How much will your investment be worth in 15 years? $29,487 $31,184 $31,706 $32,546
Demo Inc. is expected to generate a free cash flow (FCF) of $8,715.00 million this year (FCF1 = $8,715.00 million), and the FCF is expected to grow at a rate of 25.00% over the following two years (FCF2 and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 3.90% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If Demo Inc.'s weighted average cost of capital (WACC) is 11.70%, what is the current total firm value of Demo Inc.? (Note: Round all intermediate calculations to two decimal places.) $156,455.46 million $26,304.04 million $207,691.99 million $187,746.55 million Demo Inc.'s debt has a market value of $117,342 million, and Demo Inc. has no preferred stock. If Demo Inc. has 600 million shares of common stock outstanding, what is Demo Inc.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $64.19 $71.71 $ 65.19 $195.57
103.
A company’s most recent free cash flow was $600 and is expectedto grow at a constant rate of 4% forever. If the WACC is 10%, whatis the value of operations? ($10,400)

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