Suppose BSA Corporation projected to generate the following for the next five years, in million pesos: Operating Expense (excluding depreciation) 30.00 Year Revenue Тахes 1 50.00 6.00 2 55.00 33.00 6.60 60.00 36.30 7.26 4 66.55 39.93 7.99 5 73.21 43.92 8.78 A property was purchased for Php150 Million. The terminal value was assumed based on the growth rate of the cash flows The outstanding loan is Php16.62 Million. The required rate of return for this business is 12%. Given the information above answer the following: How much is the Terminal Value? Assuming there are no outstanding loans, how much is the Discounted Net Cash Flows to the Equity? Assuming that the required rate of return is 10%, how much is the Discounted Net Cash Flows to the Equity?

Suppose BSA Corporation projected to generate the following for the next five years, in million pesos: Operating Expense (excluding depreciation) 30.00 Year Revenue Тахes 1 50.00 6.00 2 55.00 33.00 6.60 60.00 36.30 7.26 4 66.55 39.93 7.99 5 73.21 43.92 8.78 A property was purchased for Php150 Million. The terminal value was assumed based on the growth rate of the cash flows The outstanding loan is Php16.62 Million. The required rate of return for this business is 12%. Given the information above answer the following: How much is the Terminal Value? Assuming there are no outstanding loans, how much is the Discounted Net Cash Flows to the Equity? Assuming that the required rate of return is 10%, how much is the Discounted Net Cash Flows to the Equity?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

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