Caledonia Products Calculating Free Cash Flow and Project

         
1 Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project?  ( 5 Points)    
         
2 What are the incremental cash flows for the project in years 1 through 5 and how do these cash flows differ from accounting profits or earnings?  ( 30 points)
         
3 What is the project’s initial outlay? ( 15 points)        
         
4 Sketch out a cash flow diagram for this project. ( 10 points)        
     
5 What is the project’s net present value? ( 10 points) 
         
6 What is its internal rate of return? (10 points)        
       
7 Should the project be taken on?  (Explain your answer) ( 5 points)        
    
      

    • Posted: 6 years ago
    Caledonia Products Calculating Free Cash Flow and Project

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