We have the knowledge that the risk free rate the risk


We have the knowledge that the risk free rate, the risk premium and the beta are .05, .07 and 1.5 respectively. Additionally, we spend $2.8 million at the beginning to do a marketing campaign and we supplement it 3 years later with a $ 2.3 million expenditure. The cash flows are EBIT $1.2, interest $.2, depreciation is $.5 million and the income tax rate is .4 for the first 3 years. The cash flow goes to $1.6, interest to $.6 and depreciation to $.6 million for the next 7 years. Compute the net present value of this project.

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Financial Management: We have the knowledge that the risk free rate the risk
Reference No:- TGS02157109

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