Chapter 4 DCF with Inflation and Taxation

6. It is expected that selling price inflation will be 4·2% per year, variable cost inflation will be 5% per year and fixed cost inflation will be 3% per year. 7. The investment has no scrap value. 8. The investment will be partly financed by a $1,500,000 loan at 10% per year. 9. Uftin Co has a weighted average cost of capital of 12% per year ... ................
................