retail coffee company is planning to open 105 new coffee outlets that are expected to generate $15.7 million in free cash flows per year, with a growth rate of 2.9% 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.

retail coffee company is planning to open 105 new coffee outlets that are expected to generate $15.7 million in free cash flows per year, with a growth rate of 2.9% 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.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter13: Other Financing Alternatives

Section: Chapter Questions

Problem 1bM

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