Tala: A project anticipates not cash flows of $10

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Tala: A project anticipates not cash flows of $10.000 at the end of year one, with such amount growing at the expected 5 percent rate of inflation over the subsequent four years. Calculate the real present value of this five-year cash stream if the firm employs a nominal discount rate of 15 percent > Tala: is expected that not working capital will amount to 23% of sales in the following year. For example, the storie wil riedid an initial (jwar O) investment in working capital of 0.23 20,600 $42 $198.906. Plant and equipment necessary to establish the giftware business will require an additional investment of $194,000. This investment will be depreciated in an asset class with a CCA rate of 25% Win will assume that the firm has other assets in this asset class. After 4 years, the equipment will have an economic and book value of zero The firm's tax rate is 35% The discount rate is 13%