What is the present value of the combined cash flows, assuming the performance targets are met?
There are 3 types of cash flows. To get the present value of all cash flows, we need to calculate the present value of each type:
The present value of all cash flows is thus $60,000 + $195,457 + $50,835 = $306,292.
What is the annual depreciation (in $ million)?
What is EBIT in each year of operation (in $ million)?
What is the operating cash flow (OCF) in each year of operation (in $ million)?
What is the change in net working capital at the end of year 2 (in $ million, as a positive number)?
What is the after-tax salvage value (ATSV) of the factory in year 21 (in $ million)?
What is the CFFA at the end of year 1 (in $ million)?
What is the free cash flow for 2020 (in $ million)?
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