A retail coffee company is planning to open 110 new coffee outlets that are expected to generate $15.9 million in free cash flows per year, with a growth rate of 2.8% in perpetuity. If the coffee company's WACC is 9.5%, what is the NPV of this expansion? The present value of the free cash flows is $ million. (Round to two decimal places.)

A retail coffee company is planning to open 110 new coffee outlets that are expected to generate $15.9 million in free cash flows per year, with a growth rate of 2.8% in perpetuity. If the coffee company's WACC is 9.5%, what is the NPV of this expansion? The present value of the free cash flows is $ million. (Round to two decimal places.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 20EA: Towson Industries is considering an investment of $256,950 that is expected to generate returns of...

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