PROGRAMSSELF DEVELOPMENTE-LIBRARY8.6.1011 1213141516Your company wants to invest JD 10,000,000 in network, taking into consideration the below tableInvestment10,000,000.00LifetimeAnnual Revenues in Yearl2,000,000.002%Annual decline in revenues from Y230%Direct Cost % of revenues15%OPEX % of revenues7%Interest Discount rate/fWACC)CO PROGRAMSSELF DEVELOPMENTE-LIBRARYZACalculate total EBITDA and EBITDA% for total 10 Yearst.A -B

EBITDA is the earning earned before considering the interest amount and tax rate.

Your company wants to invest JD 10,000,000 in network, taking into consideration the below table: Investment 10,000,000.00 10 2,000,000.00 Lifetime Annual Revenues in Yearl Annual decline in revenues from Y2 2% Direct Cost % of revenues 30% OPEX % of revenues 15% Interest Discount rate/fWACC) 7%

Your company wants to invest JD 10,000,000 in network, taking into consideration the below table: Investment 10,000,000.00 10 2,000,000.00 Lifetime Annual Revenues in Yearl Annual decline in revenues from Y2 2% Direct Cost % of revenues 30% OPEX % of revenues 15% Interest Discount rate/fWACC) 7%

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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Question

PROGRAMS
SELF DEVELOPMENT
E-LIBRARY
8.
6.
10
11 12
13
14
15
16
Your company wants to invest JD 10,000,000 in network, taking into consideration the below table
Investment
10,000,000.00
Lifetime
Annual Revenues in Yearl
2,000,000.00
2%
Annual decline in revenues from Y2
30%
Direct Cost % of revenues
15%
OPEX % of revenues
7%
Interest Discount rate/fWACC)
CO

PROGRAMS
SELF DEVELOPMENT
E-LIBRARY
ZA
Calculate total EBITDA and EBITDA% for total 10 Years
t.
A -
B

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