(solution) Problem 1. ChemTech – Free Cash Flow 0 Chemtec is undertaking a

(solution) Problem 1. ChemTech – Free Cash Flow 0 Chemtec is undertaking a

Hi, Can you please help answer the attached questions. If possible include workings.

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Problem 1. ChemTech – Free Cash Flow 0
Chemtec is undertaking a project that will require an upfront
investment today in net working capital, and plant and equipment
(i.e., capital expenditures) of $100 million and $200 million,
respectively. If there are no revenues or expenses expected until
next year, what is the project's free cash flow today in millions of
dollars? *Make sure to input all currency answers without any currency
symbols or commas, and use two decimal places of precision. 2. Problem 2. ChemTech – Free Cash Flow 1
Continuing from Problem 1, at the end of the first year, Chemtec
is expecting sales of $250 million and costs of $125 million.
There are no more required investments in either net working
capital or plant and equipment. However, the existing plant and
equipment will experience
$50 million of depreciation. Assume that Chemtec's marginal tax
rate on earnings is 35%.
Assuming that all of these cash flow occur at the end of the first
year, what is the first year's free cash flow? *Make sure to input all currency answers without any currency
symbols or commas, and use two decimal places of precision. 3.
Problem 3. Jones – NPV
Jones Corp is evaluating a project that has the following annual
free cash flows: Period 0 1 2 Free Cash Flow ?150 100 150 If the project's discount rate is
project? 12%, then what is the NPV of the *Make sure to input all currency answers without any currency
symbols or commas, and use two decimal places of precision. 4.
Problem 4. Donald?s – IRR
Donald?s Inc. is evaluating a project that has the following annual
free cash flows: Period 0 1 Free Cash Flow ?175 200 What is the project?s IRR? *Make sure to input all percentage answers as numeric values
without symbols, and use four decimal places of precision. For
example, if the answer is 6%, then enter 0.0600.