Problem
Swamp & Sand Industries has the following data. At a discount rate of 12%, calculate its Adjusted Present Value (APV) for 20X1 through 20X3. Interest expense is $5 million per year. The interest rate on debt is 6%. The corporate tax rate is 40%.
|
20X1
|
20X2
|
20X3
|
|
FCF
|
177 |
177 |
177 |
|
Depreciation
|
6
|
6
|
6
|
All numbers are in millions.