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Author Question: Use the table for the question(s) below.Year 0Years 1 to 10Revenues3.50-Manufacturing ... (Read 51 times)

evelyn o bentley

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on: Jul 9, 2019
Use the table for the question(s) below.

Year 0Years 1 to 10
Revenues3.50
-Manufacturing Expenses-0.5
-Marketing Expenses-0.25
-Depreciation-0.8
=EBIT1.95
-Taxes (40%)-0.78
=Unlevered net income1.17
+Depreciation+0.8
-Additions to Net Working Capital-0.2
-Capital Expenditures-8.00
=Free Cash Flow1.77


Panjandrum Industries, a manufacturer of industrial piping, is evaluating whether it should expand into the sale of plastic fittings for home garden sprinkler systems. It has made the above estimates of free cash flows resulting from such a decision (all quantities in millions of dollars).  It is thought that if marketing expenses are increased by 40%, then revenues will rise. By how much will revenues have to rise for the net present value (NPV) of the project to increase?
◦ at least 3.2%
◦ at least 2.9%
◦ at least 3.8%
◦ at least 2.0%
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by evelyn o bentley on Jul 9, 2019

juwms

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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evelyn o bentley

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Reply #2 on: Jul 9, 2019
TY


juwms

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Reply #3 on: Jul 9, 2019
You're welcome


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