Firm X is considering performing a considerable investment in year 2020. The value of Firm X(as of the end of 2019) if t
Posted: Thu Dec 23, 2021 9:09 am
the Continuation Value forecast of Firm X if the firm where not to
do the expansion?
3-What is the Present Value (as of the end of December 2019) of
the Interest Tax Shield forecast of Firm X if the firm where not to
do the expansion?
Firm X is considering performing a considerable investment in year 2020. The value of Firm X(as of the end of 2019) if the investment is done is estimated at $306,769,521. Table II.a 2019 2020 2021 2022 2023 2024 5,233,648 5,235,964 5,238,839 5,242,190 Firm Value: Not doing the Expansion Free Cash Flow of Firm EBITDA Interest Tax Shield 5,245,946 7,643,182 60,000 60,000 60,000 60,000 60,000