Question 3.2 You are considering investing in the following project: Initial investment Functional expenses Revenues Balance of prepaid expenses Balance of accounts payables Tax rate Operating expenses Balance of inventory Depreciation Balance of accrued expenses Replacement investments Balance of accounts receivables Please calculate the following values for YEAR 2. Change in Working Capital Requirement EBIT Net EBIT Free Cash Flow Year 0 65,408 Year 2 Year 1 4,482 24,477 192 978 21% 15,910 715 1,897 566 1,284 Year 2 5,217 34,076 251 1,556 21% 22,150 797 1,910 619 396 1,787 495 whole number, no decimals 297 whole number, no decimals 237 whole number, no decimals whole number, no decimals
Question 3.2 You are considering investing in the following project: Initial investment Functional expenses Revenues Balance of prepaid expenses Balance of accounts payables Tax rate Operating expenses Balance of inventory Depreciation Balance of accrued expenses Replacement investments Balance of accounts receivables Please calculate the following values for YEAR 2. Change in Working Capital Requirement EBIT Net EBIT Free Cash Flow Year 0 65,408 Year 2 Year 1 4,482 24,477 192 978 21% 15,910 715 1,897 566 1,284 Year 2 5,217 34,076 251 1,556 21% 22,150 797 1,910 619 396 1,787 495 whole number, no decimals 297 whole number, no decimals 237 whole number, no decimals whole number, no decimals
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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Transcribed Image Text:Question 3.2
You are considering investing in the following project:
Initial investment
Functional expenses
Revenues
Balance of prepaid expenses
Balance of accounts payables
Tax rate
Operating expenses
Balance of inventory
Depreciation
Balance of accrued expenses
Replacement investments
Balance of accounts receivables
Please calculate the following values for YEAR 2.
Change in Working Capital Requirement
EBIT
Net EBIT
Free Cash Flow
Year 0
65,408
Year 2
Year 1
4,482
24,477
192
978
21%
15,910
715
1,897
566
1,284
Year 2
5,217
34,076
251
1,556
21%
22,150
797
1,910
619
396
1,787
495 whole number, no decimals
297 whole number, no decimals
237 whole number, no decimals
whole number, no decimals
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